A company has entered a construction contract on 1st January 2018. The contract will take 2 years to complete, and the final contract price is OMR 6,000,000. At the end of first year 2018 the company incurred a cost of OMR 2,400,000 and 70% of work has been completed. Certificate for work completed have been issued to the value of RO 4,200,000. It is estimated that a further cost of OMR 1,600,000 will be incurred in the year 2019 to complete the contract. You are required to calculate the profit that will be accounted for the year 2018. O a. OMR 200,000. O b. OMR 2,000,000. OC. OMR 2,400,00. O d. OMR 1,800,000.

A company has entered a construction contract on 1st January 2018. The contract will take 2 years to complete, and the final contract price is OMR 6,000,000. At the end of first year 2018 the company incurred a cost of OMR 2,400,000 and 70% of work has been completed. Certificate for work completed have been issued to the value of RO 4,200,000. It is estimated that a further cost of OMR 1,600,000 will be incurred in the year 2019 to complete the contract. You are required to calculate the profit that will be accounted for the year 2018. O a. OMR 200,000. O b. OMR 2,000,000. OC. OMR 2,400,00. O d. OMR 1,800,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company has entered a construction contract on 1st January 2018. The contract will take 2 years to complete, and the final contract price is OMR 6,000,000. At the end of first year 2018 the company incurred a cost of OMR 2,400,000 and 70% of work has been completed. Certificate for work completed have been issued to the value of RO 4,200,000. It is estimated that a further cost of OMR 1,600,000 will be incurred in the year 2019 to complete the contract. You are required to calculate the profit that will be accounted for the year 2018. O a. OMR 200,000. O b. OMR 2,000,000. O c. OMR 2,400,00. O d. OMR 1,800,000.
A company has entered a construction contract on 1st January 2019. The contract will take 2 years to complete and the final contract price is OMR 6,000,000. At the end of first year 2019 the company incurred a cost of OMR 2,400,000 and 60% of work has been completed. Certificate for work completed have been issued to the value of OMR 3,600,000. It is estimated that a further cost of OMR1, 600, 000 will be incurred in the year 2020 to complete the contract. You are required to calculate the amount due from customer that will be accounted for the year 2019 a.OMR 3,400,000 b.OMR 3,600,000 c.None of the options d.OMR 3,800,000
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