Page 504 - F2 Integrated Workbook STUDENT 2019
P. 504
F2: Advanced Financial Reporting
The following data relates to the next 2 questions.
A contract to build a new football stadium has commenced during the year ended
30th June 20X9. The following figures relate to the contracts current estimates of
progress:
$
Contract price 800,000
Cost incurred to date 470,000
Expected costs to complete 560,000
Work certified as completed 45%
Progress billings to date 400,000
The company uses the output (work certified as complete) basis for determining
progress towards completion.
7.3 What amounts will be shown for revenue and cost of sales within the
statement of P/L for the year ended 30th June 20X9?
A Revenue $360,000, Cost of sales $463,500
B Revenue $360,000, Cost of sales $590,000
C Revenue $800,000, Cost of sales $470,000
D Revenue $800,000, Cost of sales $1,030,000
7.4 What amounts will be shown on the statement of financial position for the
contract asset/liability as at the year ended 30th June 20X9?
A Contract asset $300,000
B Contract asset $400,000
C Contract liability $33,550
D Contract liability $160,000
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