30. Lark Corp. has.a contract to construct a P5,000,000 cruise ship at an estimated cost of...

 

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30. Lark Corp. has.a contract to construct a P5,000,000 cruise ship at an estimated cost of P4,000,000. The company.will begin construction of the cruise ship in earty January 20x4 and expects to complete the project sometime in late 20x7. Lark Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances, Lark Corp. believes there are inherent hazards in the contract beyond the AOvanced Financial Accounting-A Comprehensive: Conceptual & Procedural Approach %3D normal, recuring business risks. Lark Corp. expects to recover all its costs under the contract. During 20x4 and 20x5, the company has the following activity: 20x4 P 980,000 3,020.000 1.000.000 648,000 20x5 P 2.040,000 1,960,000 1,000.000 1,280,000 Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year On its statement of financial position at December 31, 20x5, what amount will be reported related to the Construction in Process account? P40.000 costs in excess of billings. b. a. P1,020,000 costs in excess of billings. P40.000 billings in excess of costs. d. C. P20.000 billings in excess of costs. 31. Lark Corp. has a contract to construct a P5,000,000 cruise ship at an estimated cost of P4,000.000. The company will begin construction of the cruise ship in early January 20x4 and expects to complete the project sometime in late 20x7. Lark Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances. Lark Corp. believes there are inherent hazards in the contract beyond the normal, recuring business risks. Lark Corp. expects to recover all its costs under the contract. During 20x4 and 20x5, the company has the following activity: Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year 20x4 P 980,000 3,020.000 1,000,000 20x5 P 2.040,000 1.960,000 1,000,000 1.280,000 648.000 On its statement of financial position at December 31, 20x5, what amount will be reported for accounts receivable? P352.000. P720.000 P72.000. P2.000,000. a. с. b. d. 30. Lark Corp. has.a contract to construct a P5,000,000 cruise ship at an estimated cost of P4,000,000. The company.will begin construction of the cruise ship in earty January 20x4 and expects to complete the project sometime in late 20x7. Lark Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances, Lark Corp. believes there are inherent hazards in the contract beyond the AOvanced Financial Accounting-A Comprehensive: Conceptual & Procedural Approach %3D normal, recuring business risks. Lark Corp. expects to recover all its costs under the contract. During 20x4 and 20x5, the company has the following activity: 20x4 P 980,000 3,020.000 1.000.000 648,000 20x5 P 2.040,000 1,960,000 1,000.000 1,280,000 Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year On its statement of financial position at December 31, 20x5, what amount will be reported related to the Construction in Process account? P40.000 costs in excess of billings. b. a. P1,020,000 costs in excess of billings. P40.000 billings in excess of costs. d. C. P20.000 billings in excess of costs. 31. Lark Corp. has a contract to construct a P5,000,000 cruise ship at an estimated cost of P4,000.000. The company will begin construction of the cruise ship in early January 20x4 and expects to complete the project sometime in late 20x7. Lark Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances. Lark Corp. believes there are inherent hazards in the contract beyond the normal, recuring business risks. Lark Corp. expects to recover all its costs under the contract. During 20x4 and 20x5, the company has the following activity: Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year 20x4 P 980,000 3,020.000 1,000,000 20x5 P 2.040,000 1.960,000 1,000,000 1.280,000 648.000 On its statement of financial position at December 31, 20x5, what amount will be reported for accounts receivable? P352.000. P720.000 P72.000. P2.000,000. a. с. b. d.

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Question 30 correct answer would be a P40000 cost in excess of billing for the following reason The ... View the full answer