Unit_6_-_tutorial_questions - CM 20252 Sem A 2009/10 - Unit...

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CM 20252 Sem A 2009/10 - Unit 6 Tutorial Questions – Construction Contract Q1) (AFA: Ch. 11 - Q9) (Adapted from Chow, L., et. al. Advanced Financial Accounting in Hong Kong . Hong Kong: Longman) Required: You are required to prepare extracts of the financial statements for the construction contracts. Your answer should include relevant notes to the accounts. Use cost basis to calculate the stage of completion. Hints: Step 1 calculate the percentage completion of the contract 2 calculate the profit and loss recognized 3 calculate the gross amount due from/ to customers for contract work 20X1 20X2 20X3 20X4 20X5 Comprehensive income statement (extracts): Contract revenue Contract costs Statement of financial position (extracts): Current assets Gross amount due from customers for contract work Retentions Notes to the account: Contract costs to date plus recognized profits (Contract WIP)
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Less: Progress billings to date Gross amount due from customers Workings:- (i) Stage of completion: 20x1 20x2 20x3 20x4 20x5 $m $m $m $m $m Costs to date Total estimated costs Stage of completion (ii) Profits or losses recognized to date: 20x1 20x2 20x3 20x4 20x5 $m $m $m $m $m Revenue recognized to date x stage of completion Costs to date Estimated profits to date (iii) Gross amount due from customers 20x1 20x2 20x3 20x4 20x5 $m $m $m $m $m Costs to date Profits recognized to date Contract WIP Progress billings to date Gross amount due from customers
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Q2) (AFA: Ch. 11 - Q10 – assumes all contracts begin in current year)
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This note was uploaded on 11/07/2009 for the course DIVISION O CM 20252 taught by Professor Kenni during the Spring '09 term at City University of Hong Kong.

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Unit_6_-_tutorial_questions - CM 20252 Sem A 2009/10 - Unit...

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