Acc 208: Intermediate Financial Accounting

Question 1 AAA Construction Limited ("AAA") has a contract commencing 1 January 20x3 to construct a building for its customer on its customer's land for a contract price of $5,000,000. Construction is expected to be completed by 31 December 20x5. Details relating to the construction are summarised below: Financial year 20x3 20x4 20x5 $ $ $ Costs during the year 1,600,000 1,500,000 1,000,000 Estimated costs to complete 2,400,000 1,000,000 O Total billings to date 1,500,000 3,000,000 5,000,000 Cash collection during the year 1,200,000 1,600,000 2,200,000 AAA is a Singapore listed company and adopts Singapore Financial Reporting Standards (FRSs). It also has December 31 year-ends. When presenting your answers, please round to the nearest dollar