Dubai International Homes Limited is a well-established name in The United Arab Emirates. The company has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dubai International Homes Limited is a well-established name in The United Arab Emirates. The company has expertise in the construction of affordable Residential buildings. The company started on a long-term construction contract (Affordable Homes) and the total revenue that the company can generate through this particular contract is $4,800,000. The project began on January 1, 2020, and was completed by December 31, 2022. Dubai International Homes Limited uses the percentage of completion method for revenue recognition. The relevant information for each of the three years is given below: + Cost Incurred to date Estimated Costs to complete Billing to date Cash Collection to date Required: 2020 2021 $1,200,000 $2,475,000 $1,800,000 $825,000 $810,000 2022 $2,430,000 $3,210,000 $900,000 $2,700,000 $4,800,000 -0- $4,275,000 1. Compute the percentage of completion for each year. (4.5 marks) 2. Compute the amount of revenue to be recognized each year by employing percentage-of- completion method. (4.5 marks) 3. Compute the amount of gross profit to be recognized each year by employing percentage-of- completion method. (4.5 marks) 4. Prepare all necessary entries for 2020. (9 marks) 5. Compute the amount of gross profit to be recognized for the whole project. (2.5 marks) 6. Assuming the contract qualifies for recognizing revenue over time, prepare a partial balance sheet for 2020 and 2021 that includes all construction -related accounts. (5 marks) Dubai International Homes Limited is a well-established name in The United Arab Emirates. The company has expertise in the construction of affordable Residential buildings. The company started on a long-term construction contract (Affordable Homes) and the total revenue that the company can generate through this particular contract is $4,800,000. The project began on January 1, 2020, and was completed by December 31, 2022. Dubai International Homes Limited uses the percentage of completion method for revenue recognition. The relevant information for each of the three years is given below: + Cost Incurred to date Estimated Costs to complete Billing to date Cash Collection to date Required: 2020 2021 $1,200,000 $2,475,000 $1,800,000 $825,000 $810,000 2022 $2,430,000 $3,210,000 $900,000 $2,700,000 $4,800,000 -0- $4,275,000 1. Compute the percentage of completion for each year. (4.5 marks) 2. Compute the amount of revenue to be recognized each year by employing percentage-of- completion method. (4.5 marks) 3. Compute the amount of gross profit to be recognized each year by employing percentage-of- completion method. (4.5 marks) 4. Prepare all necessary entries for 2020. (9 marks) 5. Compute the amount of gross profit to be recognized for the whole project. (2.5 marks) 6. Assuming the contract qualifies for recognizing revenue over time, prepare a partial balance sheet for 2020 and 2021 that includes all construction -related accounts. (5 marks)
Expert Answer:
Answer rating: 100% (QA)
1 Compute the percentage of completion for each year Percentage of Completion Cost Incurred to DateT... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
1) What is the magnitude of the net force on the object? 2) If the pulley has an angular acceleration of 19.7 rad/s 2 what is the magnitude of the linear acceleration of the test object? 3) What is...
-
Subject : Strategic Management in a Global Environment Safaricom: Innovative Telecom Solutions to Empower Kenyans As the largest mobile provider in Kenya, Safaricom has touched the lives of Kenyans...
-
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
-
For seven? years, France Corporation has been owned entirely by Steve and Maryssa? who are husband and wife? Steve and Maryssa have a $183,000 basis in their jointly owned France stock. The France...
-
Should the most experienced member of a department have final approval of the content for the department's wiki? Why or why not?
-
Put Company paid $220,000 for an 80 percent interest in Sel Company on July 1, 2011, when Sel Company had total equity of $110,000. Sel Company reported earnings of $10,000 for 2011 and declared...
-
Refer to Exercise 12. Can you reject H0 at the = 0.05 level? State a conclusion. Exercise 12 A simple random sample of 17 business majors from a certain university had a mean GPA of 2.81 with a...
-
A company manufactures large freezers for grocery stores. It is presently trying to plan its production and inventory levels for the next six months. Because of seasonal uctuations in utility and raw...
-
Propose and design a Project Plan for the implementation of AI software to enhance the chosen organization's proposals to help improve operations in Task 1. Discuss how the project plan will impact...
-
1. If Bozena participates and the 401(k) earns 10 percent annually, how much will she have accumulated in 45 years (to age 67) even if her salary does not change? 2. If she does not participate and...
-
Present value can be used to determine the fair price -or value - of a bond. In the examples that follow, assume you are working with zero-coupon bond and that there are no transaction costs. A...
-
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661. The standards for...
-
Flower Company sells a product with a contribution margin ratio of 40%. Fixed costs are $1,500 per month. What amount of sales (in dollars) must Flower Company have to break even? If each unit sells...
-
Capital budgeting involves decisions about whether or not to invest in fixed assets, and has a great influence on the future performance and value of companies. Discounted cash flow analysis is used...
-
Search about the company and answer the following questions, 1: Do some research about sustainable practices adopted by this company. How is this company contributing to sustainability (if they are...
-
According to the graph below, at what point will reducing your amount of diversifiable risk in a portfolio become very difficult? 49.2% Risk (Portfolio Standard Deviation) 19.2% # of securities in...
-
A parallel-plate capacitor has plates of area 200 cm and separation between the plates 100 mm. What potential difference will be developed if a charge of 1.00 nC (i.e., 100 x 10 C) is given to the...
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
a. Briefly discuss how the amortization of discounts and premiums on financial instruments are classified in an IFRS-based statement of cash flows. b. Briefly discuss how other comprehensive income...
-
Refer to the example of Tradewinds Company illustrated by the timeline in Exhibit 3-2 and the facts given at the beginning of Section B, Accrual versus Cash Accounting. In addition, assume that the...
-
Obtain the annual report for Encana Corporation for the fiscal year ended December 31, 2013, either through the companys website or through SEDAR (www.sedar.com). Required: a. How much cash did the...
-
True or False. The element stiffness matrices are always singular.
-
Derive the stiffness matrix of the bar element in longitudinal vibration whose cross-sectional area varies as \(A(x)=A_{0} e^{-(x / l)}\), where \(A_{0}\) is the area at the root (see Fig. 12.14)....
-
Fill in the Blank. In the finite element method, the elements are assumed to be interconnected at certain points known as ____________ .
Study smarter with the SolutionInn App