Dubai International Homes Limited is a well-established name in The United Arab Emirates. The company has...

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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)

Answer rating: 100% (QA)

1 Compute the percentage of completion for each year Percentage of Completion Cost Incurred to DateT... View the full answer