Question No. 1: The Mic Mac Construction Corporation specializes in the building of athletic stadiums. Recently,...

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Question No. 1: The Mic Mac Construction Corporation specializes in the building of athletic stadiums. Recently, Mic Mac contracted with the Government of Kuhl to construct a state-of-the-art athletic facility over a three-year period in the capital city of Coblentz for a total contract price of $12,000,000. Annualized information relating to this contract is summarized below: (d) 2020 2021 2022 [Costs incurred each year 2,530,000 5,870,000 Estimated costs to complete at year-end 3,150,000 ] 8,470,000 2,800,000 0 Annual Billings to Coblentz 4,000,000 4,000,000 4,000,000 Annual Collections on Billings 1,000,000 5,000,000 6,000,000 (d) Assume that Mic Mac follows IFRS. Using the POC method, prepare a partial Statement of Financial Position and Statement of Comprehensive Income for Mic Mac Construction Corporation for 2020, 2021, and 2022. Your Statement of Financial Position must show relevant balances for accounts receivable and the contract asset/liability accounts. Percentage of Completion Method: (IFRS) Mic Mac Construction Corporation (Partial) Statement of Financial Position (IFRS terminology) Current Assets Accounts Receivable December 31, 2020 $3,000,000 Current Liabilities Net Contract Liability ($2,760,000 - $4,000,000) 3 $1,240,000 Mic Mac Construction Corporation (Partial) Statement of Financial Position (IFRS terminology) December 31, 2021 Current Assets Accounts Receivable $2,000,000 Inventory Contract Asset 9,000,000* Less: Contract Liability 8,000,000* Net Contract Asset 3 $1,000,000 (d) Mic Mac Construction Corporation (Partial) Statement of Financial Position (IFRS terminology) December 31, 2022 Current Assets Accounts Receivable Zero Balance Inventory Contract Asset 12,000,000* Less: Contract Liability 12,000,000* Net Contract Asset 3 Zero Balance Question No. 1: The Mic Mac Construction Corporation specializes in the building of athletic stadiums. Recently, Mic Mac contracted with the Government of Kuhl to construct a state-of-the-art athletic facility over a three-year period in the capital city of Coblentz for a total contract price of $12,000,000. Annualized information relating to this contract is summarized below: (d) 2020 2021 2022 [Costs incurred each year 2,530,000 5,870,000 Estimated costs to complete at year-end 3,150,000 ] 8,470,000 2,800,000 0 Annual Billings to Coblentz 4,000,000 4,000,000 4,000,000 Annual Collections on Billings 1,000,000 5,000,000 6,000,000 (d) Assume that Mic Mac follows IFRS. Using the POC method, prepare a partial Statement of Financial Position and Statement of Comprehensive Income for Mic Mac Construction Corporation for 2020, 2021, and 2022. Your Statement of Financial Position must show relevant balances for accounts receivable and the contract asset/liability accounts. Percentage of Completion Method: (IFRS) Mic Mac Construction Corporation (Partial) Statement of Financial Position (IFRS terminology) Current Assets Accounts Receivable December 31, 2020 $3,000,000 Current Liabilities Net Contract Liability ($2,760,000 - $4,000,000) 3 $1,240,000 Mic Mac Construction Corporation (Partial) Statement of Financial Position (IFRS terminology) December 31, 2021 Current Assets Accounts Receivable $2,000,000 Inventory Contract Asset 9,000,000* Less: Contract Liability 8,000,000* Net Contract Asset 3 $1,000,000 (d) Mic Mac Construction Corporation (Partial) Statement of Financial Position (IFRS terminology) December 31, 2022 Current Assets Accounts Receivable Zero Balance Inventory Contract Asset 12,000,000* Less: Contract Liability 12,000,000* Net Contract Asset 3 Zero Balance