NEED THE SOLUTION ON EXCEL ALONG WITH THE FORMULA VIEW On January1, 2011 Jaspers
ID: 2398236 • Letter: N
Question
NEED THE SOLUTION ON EXCEL ALONG WITH THE FORMULA VIEW
On January1, 2011 Jaspersigned a contract to construct a building for Teal fora fixed price of $3,000,000. The contract was completed in 2013. Pertinent contract information is presented below: Totals $2,290,000 2011 2012 $720,000 2013 $850,000 Costs incurred during year $720,000 Estimated cost to complete Project atyearend $1,080,000 $960,000 $0 $2,040,000 Amounts billed to customer During the year $1,400,000 800,000 $800,000 $3,000,000 Determined the amount of revenue recognized in 2011. Determine the amount of gross profit (loss) recognized in 2012. Determine the balance in both the Construction in Progress And Construction Billings accounts and determine how the net Amount of these two accounts should be reported on the 2012 Balance sheet. Determine the amount of expenses recognized in 2013 Assuming Jasper does not meetthe criteria to recognize revenue Overtime, determine the revenue recognized in 2011. a. b. c. 2 points 2 points 2 points d. e. 2 points 2 points f. Determine the amount of gross profit recognized in 2013Explanation / Answer
Fixed price of Contract
Particulars
2011
2012
2013
Total
Cost incurred during year
7,20,000
7,20,000
8,50,000
22,90,000
Estimated cost to complete the contract
10,80,000
9,60,000
-
20,40,000
Total (A)
18,00,000
16,80,000
8,50,000
43,30,000
Less:-
Amount billed to customer
14,00,000
8,00,000
8,00,000
30,00,000
Total (B)
14,00,000
8,00,000
8,00,000
30,00,000
Revenue/ (Loss) to be recognised (B-A)
(4,00,000)
(8,80,000)
(50,000)
(13,30,000)
% of work to be recognised as revenue (7,20,000/18,00,000)
40.00%
42.86%
100.00%
Revenue should be recognised as a % of total contract value (ie. % * 30,00,000)
12,00,000
12,85,714
30,00,000
A
Amount of Revenue to be recognised in 2011
12,00,000
B
Amount of gross profit (loss) recognised in 2012
(1285714-880000=405714)
4,05,714
C (a)
Construction in progress (2012)- Total cost ie. Cost incurred + Cost in WIP
16,80,000
C (b)
Construction in Billing (2012)
8,00,000
C{C}
Net amount (2012)
Gross amount due from customers as Asset in Balance sheet
8,80,000
D
Amount of Expense to be recognised in 2013
(Since any loss should be recognised as an expense immediately)
(50,000)
E
Revenue to be recognised if he cannot recognize overtime in 2011
(4,00,000)
F
Amount of Gross profit in 2013
(Total Revenue - Total Cost)
(13,30,000)
Fixed price of Contract
Particulars
2011
2012
2013
Total
Cost incurred during year
7,20,000
7,20,000
8,50,000
22,90,000
Estimated cost to complete the contract
10,80,000
9,60,000
-
20,40,000
Total (A)
18,00,000
16,80,000
8,50,000
43,30,000
Less:-
Amount billed to customer
14,00,000
8,00,000
8,00,000
30,00,000
Total (B)
14,00,000
8,00,000
8,00,000
30,00,000
Revenue/ (Loss) to be recognised (B-A)
(4,00,000)
(8,80,000)
(50,000)
(13,30,000)
% of work to be recognised as revenue (7,20,000/18,00,000)
40.00%
42.86%
100.00%
Revenue should be recognised as a % of total contract value (ie. % * 30,00,000)
12,00,000
12,85,714
30,00,000
A
Amount of Revenue to be recognised in 2011
12,00,000
B
Amount of gross profit (loss) recognised in 2012
(1285714-880000=405714)
4,05,714
C (a)
Construction in progress (2012)- Total cost ie. Cost incurred + Cost in WIP
16,80,000
C (b)
Construction in Billing (2012)
8,00,000
C{C}
Net amount (2012)
Gross amount due from customers as Asset in Balance sheet
8,80,000
D
Amount of Expense to be recognised in 2013
(Since any loss should be recognised as an expense immediately)
(50,000)
E
Revenue to be recognised if he cannot recognize overtime in 2011
(4,00,000)
F
Amount of Gross profit in 2013
(Total Revenue - Total Cost)
(13,30,000)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.