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Can any tutor help to solve 4 accounting calculation questions in the following attachment? Thanks a lot. 1. Teller Ltd has been contracted by Morrow
Can any tutor help to solve 4 accounting calculation questions in the following attachment? Thanks a lot.
1. Teller Ltd has been contracted by Morrow Ltd to construct a motorcycle manufacturing plant. The work will involve complicated engineering works, and is expected to take three years. Teller and Morrow have negotiated for this to be a fixed price contract with a total price of $75 million. The contract was signed on the 1st of July 2015, and construction commenced three months later. Teller?s financial year ends on the 30th of June. Teller bills the customer $25 million each year and the customer pays before year end. The following information is available in relation to the construction: 2016: Costs spent during the year $14,000,000. Estimated costs to complete $50,000,000. 2017: Costs spent during the year $38,000,000. Estimated costs to complete $15,000,000. 2018: Costs spent during the year $15,000,000. Estimated costs to complete $0. How much of the profit is recognised in 2016? Round your answer to the nearest dollar. 2. Teller Ltd has been contracted by Morrow Ltd to construct a motorcycle manufacturing plant. The work will involve complicated engineering works, and is expected to take three years. Teller and Morrow have negotiated for this to be a fixed price contract with a total price of $75 million. The contract was signed on the 1st of July 2015, and construction commenced three months later. Teller?s financial year ends on the 30th of June. Teller bills the customer $25 million each year and the customer pays before year end. The following information is available in relation to the construction: 2016: Costs spent during the year $14,000,000. Estimated costs to complete $50,000,000. 2017: Costs spent during the year $38,000,000. Estimated costs to complete $15,000,000. 2018: Costs spent during the year $15,000,000. Estimated costs to complete $0. How much revenue is recognised in 2017? Round your answer to the nearest dollar. 3. Teller Ltd has been contracted by Morrow Ltd to construct a motorcycle manufacturing plant. The work will involve complicated engineering works, and is expected to take three years. Teller and Morrow have negotiated for this to be a fixed price contract with a total price of $75 million. The contract was signed on the 1st of July 2015, and construction commenced three months later. Teller?s financial year ends on the 30th of June. Teller bills the customer $25 million each year and the customer pays before year end. The following information is available in relation to the construction: 2016: Costs spent during the year $14,000,000. Estimated costs to complete $50,000,000. 2017: Bad weather has adversely affected the construction process, and as such Teller Ltd spent $43,000,000 during the year and expected cost to complete will be $19,000,000 in the year ended 30th of June 2018. How much loss is recognised in 2017? Round your answer to the nearest dollar. 4. Hill Mining incurs the following exploration and evaluation costs at AreaA over the years indicated: 30th June 2015: $14,000. 30th June 2016: $10,000. 30th June 2017: $12,000. By the 30th of June 2017, Gold of an economically recoverable amount is discovered at AreaA. The site is estimated to contain 40,000 kilograms of Gold. After the discovery, Hill Mining constructs roads and infrastructure in July 2017 at a cost of $150,000. Portable extraction machinery, with a useful life of 15 years, is also put in place at a cost of $200,000. Production begins in March 2018. The cash cost of extraction and processing is $7.50 per kilogram. During the year ended 30th of June 2018, 2000 kilograms of Gold are extracted. Assuming that Hill Mining capitalises it?s exploration and evaluation costs, what is the carrying value of the Gold in the books of Hill MiningStep by Step Solution
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