University of Applied Sciences, Faculty of Administrative Sciences, Department of Accounting and Finance

The second group: course$-$specific skills

second question:

Applied Science University College of Administrative Sciences Department of Accounting & Finance.

$10$ Symptoms$]$

$5$ symptoms$)$

Ahmed Contracting Company agreed with one of the municipalities to build a bridge within a period of three years. The price of the construction contract for this bridge was $600,000$ dinars, and the expected cost of its construction was $480,000$ dinars. The data on the actual cost was

What is expected during the three years is as follows:

Statement

Costs that occurred each period

Estimated costs to complete the contract in estimates at the end of each year

Invoices issued to the customer

Cash receipts from the customer.

Year $2020$

Year $2021$

Year $2022$

$180,000$

$192,000$

$0$

$208,000$

$448,000$

$180,000$

$240,000$

$180,000$

$250,000$

$150,000$

Required: Apply concepts related to IFRS $15$ to:

$1-$ Calculating the completion percentage for the years $2020$ and $2021$

$2-$ Prepare all entries related to the contract for the year $2020$ only in the books of Ahmed Contracting Company

Student grade

$3$ symptoms$)$

$2$ signs

$5/$

$3$