Grange Hill Construction Limited (GHCL) is located in Westmoreland, Jamaica. GHCL started work on two construction...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Grange Hill Construction Limited (GHCL) is located in Westmoreland, Jamaica. GHCL started work on two construction projects during the year ended 31 December 2017. Work on the contracts are certified by a surveyor as performance obligations are completed. The following figures relate to two projects at the end of the reporting period. Landilo Project Frome Project $'000 $'000 Contract price 120,000 110,000 Costs incurred to date 16,800 -34,400 Estimated costs to completion 67,200 82,400 Value of work certified to datle 28,800 36,000 Progress Billings (amt. invoiced) 30,400 40,800 Cash received on invoiced amount 28,400 29,800 An arca of unstable soil was discovered under the site for the Frome project and the costs of dealing with this have been taken into account in the calculation of estimated costs to completion. GHCL's lawyers are virtually certain that the customer will have to bear the additional costs of S14,000,000 which will be incurred in stabilizing the land. GHCL recognizes revenues and profits on construction contracts on the basis of work certified to date. REQUIRED: Calculate the figures which would appear in GHCL's financial statements in respect of these two projects for 2017. a) (21 marks) Grange Hill Construction Limited (GHCL) is located in Westmoreland, Jamaica. GHCL started work on two construction projects during the year ended 31 December 2017. Work on the contracts are certified by a surveyor as performance obligations are completed. The following figures relate to two projects at the end of the reporting period. Landilo Project Frome Project $'000 $'000 Contract price 120,000 110,000 Costs incurred to date 16,800 -34,400 Estimated costs to completion 67,200 82,400 Value of work certified to datle 28,800 36,000 Progress Billings (amt. invoiced) 30,400 40,800 Cash received on invoiced amount 28,400 29,800 An arca of unstable soil was discovered under the site for the Frome project and the costs of dealing with this have been taken into account in the calculation of estimated costs to completion. GHCL's lawyers are virtually certain that the customer will have to bear the additional costs of S14,000,000 which will be incurred in stabilizing the land. GHCL recognizes revenues and profits on construction contracts on the basis of work certified to date. REQUIRED: Calculate the figures which would appear in GHCL's financial statements in respect of these two projects for 2017. a) (21 marks)
Expert Answer:
Answer rating: 100% (QA)
Amount transferred to Costing profit and loss account for the year 2017 Landilo Project Nil ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
Posted Date:
Students also viewed these accounting questions
-
During the year ended 31 December 2018 Pakyi Ltd invested in a convertible bond on its issue date. The bond matures four years after the issue date and at that date the bond can be converted into...
-
During the year ended December 31, 2012, Kelly's Camera Shop had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2012, Accounts Receivable showed a $10,000 debit balance,...
-
During the year ended December 31, 2011, Rainmaker Entertainment Inc. (Rainmaker) experienced numerous accruals and deferrals. As a long-term employee of Rainmaker's accounting and financial staff,...
-
With a global economy, the only way to achieve cost-effective control of greenhouse gases is to assure that every country imposes the same universal set of emissions standards. Discuss.
-
In the month preceding the creation of this exercise, the author made 18 phone calls in 30 days. No calls were made on 19 days, 1 call was made on 8 days, and 2 calls were made on 5 days. a. Find the...
-
Recently, Pfizer and Allergan-the makers of Viagra and Botox, respectively-initiated a $160 billion merger. Pharmaceutical companies tend to spend a greater percentage of sales on R&D activities than...
-
Solve the following SDEs using the general integrating factor method with \(X_{0}=0\) : (a) \(d X_{t}=\frac{X_{t}}{t} d t+\sigma t X_{t} d B_{t}\), (b) \(d X_{t}=X_{t}^{\alpha}+\sigma X_{t} d...
-
You are thinking about investing $5000 in your friends landscaping business. Even though you know the investment is risky and you cant be sure, you expect your investment to be worth $5750 next year....
-
Given the following data for Oriole Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $220000 Beginning work in process $40000 Direct labor...
-
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Customer ID 652-54310 Results of A/R Confirmations Complete the worksheet below by reviewing the accounts receivable confirmation...
-
Problem 1: The adjusted trial balance of Debit Company is shown below: Debit Company Adjusted Trial Balance December 31, 2022 Cash Accounts receivable Supplies Prepaid Rent (3 months) Equipment, net...
-
Explain how economic-value organizations can create value through activities known as corporate social responsibility.
-
Modify UseArgument.java to make a program UseThree.java that takes three names as command-line arguments and prints a proper sentence with the names in the reverse of the order given, so that, for...
-
Explain when a firm should use each of four major ways to enter a foreign market.
-
What is an example of a product class that lost its differentiation? How and why did it happen?
-
What assumption do we have to make for the last increment of strain to be representative of earlier strain increments in the zone?
-
How can your client access Shared Documents in QuickBooks Online? Via Accounting in the left-hand navigation Via the Attachments area of the Gear icon Via Accountant Tools Via My accountant in the...
-
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
-
At the end of the year, Campus Properties statement of cash flows reported the following for investment activities: Requirement 1. For each item listed, make the journal entry that placed the item on...
-
York Farm Supply, Inc., began September with inventory of $45,700. The business made net purchases of $62,300 and had net sales of $107,600 before a fire destroyed the companys inventory. For the...
-
On October 1, 2014, Mark Brandford opened Marks Coffee Shop, Inc. Brandford is now at a crossroads. The October financial statements paint a glowing picture of the business, and Brandford has asked...
-
Consider the multiple linear regression model fit to the baseball data in Problem 3.41. Problem 3.41 Consider the 2016 major league baseball data in Table B.22. While team ERA was useful in...
-
Consider the simple linear regression model fit to the rental price data from Problem 2.36. Data From Problem 2.36 Table B.24 contains data on median family home rental price and other data for 51 US...
-
Consider the multiple linear regression model fit to the rental price data in Problem 3.42. Problem 3.42 Table B.24 contains data on median family home rental price and other data for 51 US cities....
Study smarter with the SolutionInn App