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Question 1 Oriole Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atalantis Structures Ltd. The contract is
 Question 1 | |||||||
| Oriole Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atalantis Structures Ltd. The contract is a non-cancellable fixed price contract for $10.2 million. The following data pertains to the contract during the construction period. | |||||||
| 2020 | 2021 | 2022 | |||||
| Total costs to date | $ 3,915,000 | $ 8,700,000 | $ 9,900,000 | ||||
| Estimated costs to complete | 4,785,000 | 1,300,000 | - | ||||
| Progress billing during year | 3,590,000 | 4,210,000 | 2,400,000 | ||||
| Cash collected during year | 3,165,000 | 4,260,000 | 2,775,000 | ||||
| Determination of percentage complete for 2020, 2021 and 2022 (1.50 marks) | |||||||
| 2020 | |||||||
| 2021 | 1 | ||||||
| 2022 | |||||||
| Determine the amount of revenue to be recognized in 2020, 2021 and 2022 (1 mark) | |||||||
| What is the gross profit in dollars for 2020, 2021, and 2022? (3 marks) | |||||||
| 2020 | 2021 | 2022 | Total | ||||
| What is the gross profit in percentage for 2020, 2021, and 2022? (1.5 marks) | |||||||
| 2020 | 2021 | 2022 | Total | ||||
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
3rd Edition
0978727932, 978-0978727932
