2)lriga Company issued the 2021 financial statements on March 1, 2022. The entity provided the following data for the year ended December 31, 2021: Amount owing to another entity for services rendered during December 2021 Estimated long service leave owing to employees in respect of past services Estimated cost of relocating an employee from head office to a branch in another City (employee will physically relocate in January 2022) 300,000 1,200,000 100,000 150,000 Estimated cost of overhauling machine every 5 years What amount should be recognized as provision on December 31, 2021? A. 1,200,000 C. 1,600,000 B. 1,300,000 D. 1,750,000

2)lriga Company issued the 2021 financial statements on March 1, 2022. The entity provided the following data for the year ended December 31, 2021: Amount owing to another entity for services rendered during December 2021 Estimated long service leave owing to employees in respect of past services Estimated cost of relocating an employee from head office to a branch in another City (employee will physically relocate in January 2022) 300,000 1,200,000 100,000 150,000 Estimated cost of overhauling machine every 5 years What amount should be recognized as provision on December 31, 2021? A. 1,200,000 C. 1,600,000 B. 1,300,000 D. 1,750,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Do not give image format
The actuarial present value of future benefits earned by employees for services rendered in 2019 amounted to 55250. DBO opening - 942000 plant assets opening - 660000 return - 7% actual return - 45000 contributions - 145350 a) calculate pension expense b) calculate net defined obligation liability/asset surplus or deficit.
Pharoah Construction Company uses the percentage-of-completion method of accounting. In 2025, Pharoah began work under a contract with a contract price of $1,650,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is incorrect. 2025 $1,093,400 446,600 933,400 260,000 2026 $1,510,000 -0- 1,650,000 1,650,000 What portion of the total contract price would be recognized as revenue in 2025? In 2026?
The board of directors of Oriole Construction Company is meeting to choose between the cost-recovery method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Oriole's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Oriole commenced doing business on January 1, 2024. 2. Construction activities for the year ended December 31, 2024, were as follows: Contract Costs Estimated Additional Costs Incurred Total Contract Billings Through Cash Collections to Through Through Complete 12/31/24 Project Price 12/31/24 12/31/24 Contract A $494,000 $334,000 $304,000 $418,000 $95,000 B 714,000 204,000 204,000 186,000 434,000 C 472,000 469,000 384,000 344,000 -0- D 187,000 94,000 62,000 117,000 91,000 E 444,000 394,000 394,000 314,000 78,500 $2,311,000 $1,495,000 $1,348,000 $1,379,000 $698,500 3. Each contract…
Explain clearly
The board of directors of Oriole Construction Company is meeting to choose between the cost-recovery method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Oriole's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Oriole commenced doing business on January 1, 2024. 2. Construction activities for the year ended December 31, 2024, were as follows: 3. 4. (a) Project A B с D E Total Contract Price $494,000 714,000 472,000 187,000 444,000 $2,311,000 * Your answer is incorrect. Billings Through 12/31/24 $334,000 204,000 469,000 (1) The cost-recovery method. 94,000 394,000 $1,495,000 Cash Collections Through 12/31/24 $304,000 204,000 384,000 62,000 394,000 $1,348,000 Contract Costs Incurred Through 12/31/24 Each contract is with a different customer. Any work remaining to be done on the contracts is…
Only need assistsance with required question (a) Thanks
8. Euphoria Company had a balance of P820,000 in the professional fees expense account on December 31, 2020, before considering year-end adjustments relating to the following: Consultants were hired for a special project at a total fee not to exceed P650,000. The entity had recorded P550,000 of these fees based on building for work performed in 2020. The attorney's letter requested by the auditor dated Jan. 31, 2021, indicated that legal fees of P60,000 were billed on Jan. 15, 2021 for worked performed in Nov. 2020, and the unbilled fees for Dec. 31, 2020 were P70,000. What amount should be reported as professional fees expense for the year ended December 31, 2020?
42. ABC, Inc. works on a P5,250,000 contract in 2022 to construct an office building. During 2022, ABC, Inc. uses the cost to cost method. At December 31, 2022, the balances in certain accounts were: Construction in progress – P1,890,000; accounts receivable – P180,000; and billings on construction in process – P900,000; contract retention – P90,000; mobilization fee – P70,000. At December 31,2022, the estimated costs to completion are P2,352,000. How much is the realized gross profit in 2022?
Please do not give answer in image formate
Subject:
Please help me with show all calculation thanku