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thnaks in advance Kobe Inc. is a construction company operating in the BC area. Kobe made their contract for the construction of a Hotel in
thnaks in advance Kobe Inc. is a construction company operating in the BC area. Kobe made their contract for the construction of a Hotel in New York on January 1, 2019. The company has a December 31st year-end. The contract price is 1.1 million. Kobe agreed that the Hotel would be completed by May 1, 2020 and if there is a delay, the contract price will be reduced by $25,000. This is the first contract that Kobe has entered into that has had a completion date penalty. The estimated design and construction costs are $765000. The payment terms are $450000 to be paid on March 1, 2019, $300,000 to be paid on June 30, 2019 and $350000 to be paid on May 1, 2020. During 2019, Kobe incurred hotel construction costs of $600,000. Kobe lost several members of their construction team at the end of 2019 and are expecting that this will result in a 1-month delay in the completion of the cottage. At December 31, 2019 Kobe expected to incur an additional $200,000 to complete the contract. The customer paid 450000 on April 30, 2019 and $350000 on July 15, 2019. The actual costs incurred in 2020 to complete the cottage were $210,000. The hotel was completed by May 1, 2020. The customer made the final payment of $300,000 on May 1, 2020. Other Information: Kobe prepare the financial statement with IFRS standards. Kobe uses the input method of costs for performance obligations satisfied over time. Prepare all recommended journal entries for 2019 and 2020 and all details for any amounts that need to be calculated
thnaks in advance
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