Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 Januaty 2020. Al Rashid signed a contract with a customer to construct a building for consideration of 54500,000 plusa borus of 5900000 if

image text in transcribed
On 1 Januaty 2020. Al Rashid signed a contract with a customer to construct a building for consideration of 54500,000 plusa borus of 5900000 if the buiking is completed within 20 months. Estimated cost to construct the buiding were $3,375,000,0. 1 January 2020, because of factor outside its control, Al Rashid was not sure whether the bonus would be achieved. As on 31 December 2020 Al Rashid had incurred a cost ot $2,250,000. they were still unsure as to whether bonus targe would be met Al Rashid measures progress toward completion based on costs incurred. On 31 December 2020, Al Rashid had billed and received 52250000 from the customer. Required: How should this transaction be accounted for in the year ended 31 December 2020 in the itatement of profit or low and the statement of financial position? show all your calculations. You can copy the image of the following table and poster it in the answer box to tolve the quentiond in aroper form On 1 Januaty 2020. Al Rashid signed a contract with a customer to construct a building for consideration of 54500,000 plusa borus of 5900000 if the buiking is completed within 20 months. Estimated cost to construct the buiding were $3,375,000,0. 1 January 2020, because of factor outside its control, Al Rashid was not sure whether the bonus would be achieved. As on 31 December 2020 Al Rashid had incurred a cost ot $2,250,000. they were still unsure as to whether bonus targe would be met Al Rashid measures progress toward completion based on costs incurred. On 31 December 2020, Al Rashid had billed and received 52250000 from the customer. Required: How should this transaction be accounted for in the year ended 31 December 2020 in the itatement of profit or low and the statement of financial position? show all your calculations. You can copy the image of the following table and poster it in the answer box to tolve the quentiond in aroper form

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Business Performance

Authors: BELAMKADDAM HAMZA

1st Edition

6205444062, 978-6205444061

More Books

Students also viewed these Accounting questions