Solutions for exercises marked with an asterisk $(")$ are accessible in MyAccountingLab.

Question I

MACTAR has a series of contracts to resurface sections of motorways. The scale of the contract means

several years' work and each motorway section is regarded as a separate contract.

The M$62$ contract has had major difficulties due to difficult terrain, and the contract only allows for

$10\%$ increase in contract sum for such events.

Required:

From the information above, calculate for each contract the amount of profit $($or loss$)$ you woul

show for the year and show how these contracts would appear in the statement of financial positio

with all appropriate notes.