MACTAR have a series of contracts to resurface sections of motor ways. The scale of the contract
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From the following information, calculate for each contract the amount of profit (or loss) you would show for the year and show how these contracts would appear in the statement of financial position with all appropriate notes.
M1 £m
Contract ....................... 3.0
Costs to date ...................... 2.1
Estimated cost to complete ............... 0.3
Certified value of work completed to date ......... 1.8
Progress billings applied for to date ........... 1.75
Payment received to date ................. 1.5
M6 £m
Contract sum ..................... 2.0
Costs to date....................... 0.3
Estimated cost to complete................ 1.1
Certified value of work completed to date .......... 0.1
Progress billings applied for to date ............. 0.1
Payments received to date .................. —
M62 £m
Contract sum ..................... 2.5
Costs to date....................... 2.3
Estimated costs to complete................. 0.8
Certified value of work completed to date ........... 1.3
Progress billings applied for to date ............ 1.0
Payments received to date................. 0.75
The M62 contract has had major difficulties due to difficult terrain, and the contract only allows for a 10% increase in contract sum for such events.
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Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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