Activity-Chapter 5: Ans. 4,000,000 Solution: 20x1
Activity-Chapter 5: Ans. 4,000,000 Solution: 20x1
Activity-Chapter 5: Ans. 4,000,000 Solution: 20x1
20x1
Total contract price 10,000,000
Multiply by: % of completion 40%
Contract revenue to date 4,000,000
Contract revenue in prior yrs. -
Contract revenue for the year 4,000,000
Cost of construction (a) (2,400,000)
Profit (loss) for the year 1,600,000
20x3
Total contract price 10,000,000
Multiply by: % of completion 100%
Contract revenue to date 10,000,000
Contract revenue in prior yrs. 7,500,000
Contract revenue for the year 2,500,000
Cost of construction (a) (1,500,000)
Profit (loss) for the year 1,000,000