CRC_ACEH The Professional CPA Review School Main: 3F C. Villaroman Bigg, 73 p, Campa St. cor Es 2 (2) nsbsor yen jopea eel vion a ermal add . income received in advance!not-aujusted = uste ey Uaietistaes not taken up at year-end’... ia Ra lags a) 4 ~ ‘The share of partner Jimmy in the 2018 corrected net income is: - A. P8,400 B. .P £0,000 CG. P 11,750. DB. P 12,500 7200 14. (00's omitted) A construction contractor has a fixed price contract for P 100,000 to construct a building (the project). =e The contractor's estimate of total céntract costs is P 60,000, oe will il takeCRee yeardtp construct the building. eens i ‘the end of the first year of the project December 31, 2018: “The contractor has incurred costs of P 20,000 on the: contract, Including £20003: that is held offsite, ~~ e~2= 18600 + Anindependent ‘surveyor certified that 28" ent of the contract work is completed. 0 * The site was cleared (stipulated in the-contract to constitute 10 percent of the total project), » the foundation laid (stipulated as § percent of the total project) and the walls of the building erected (stipulated 28 14 percent ofthe total project, The contractor determines that th: cessed construction contract is measured most reliably reference to tht ‘tn that costs incurred“for work performed to date bear to the estimated total casts. sons come tage of someon of the contract is: 30% C. 28%: D. 26% ‘At December 31, 201: AL 33 113% SET A mtPage 6 First Pre-board examination - October 2017 batch je nstruct 2 building of a design 1 has 2 fixed price contract for P 100,000 to cor i r before Deon corainiced and using maiérials that have never before been used in struction of building (the project). ions will take at ‘The contracior began construction of the building in 2018 and expects ion wil ‘east five years In 2018 the contracter incurred P 5,000 contract costs 0 4 of 2018 the contractor cannot estimate the outcome of the contact with | area j 19 estimate the project's percentage of completion (i.e., because 2 Liners ne design ard new materials the ently cannot estimate total expected contracts t reliacilty). It is highly likely that the contract price will, be recei the Contractor must recognize revenue of: 8 P5000 ¢. P 100,000 D. Incomplete data cmifed) A contractor enters into a construction contract on January 1, 2017, The contractor 6 {0 a fixed price of ° 9,000 to build a bridge. The.contractor's initial estimate of contract costs The contract expects that it will take three years to build the bridge. or has a 31 December year-end, ' # {0s first year of the contract December 31, 2017, the contractor's estimate of total cost FSa880 19 P 8,050 (costs incurred in 2017 amounted to P2,093), in 2018 the customer and contractor agree to a variation result n increase in contract revenue oFj700, 2rd estimaled additional contract casts of P 150. A the end of 2018, cosie meres ore FO 7e inelude P 100 paid for standard materials Stored at the site to be used ipzot4 td)compiete the project. tie = i Us contractor astermines the stage of completion of the contract by calculating the proportion that contract costs incurred jor work performed to date bear the latest estimated total contract costs. Determine the revenue, expenses, and profit for the year 2017. De 300 5 ho” Paes P3975 P4ga ary Ae 2 p2mo oe 2083 Paar wth, ag c: . Bes 075 P 503. > sa00 DP 4sea 0 dors - page GYR au) be0 Ge 20f2 leit a2 ‘© same information in No. 16, determine the revenue, een id e Gor the year I Expenses Profit ‘ 3 P3875 P493 1 44g 2.093 P2d7 P2132 P 260 P 21032 P 497 athe sible apiestolaletly i. . onstruct a building (the corte the bonaiee = intial estimate of total contract cosis is P 60,000. It will lake tne neon ne censtruct the building. i Ai the end of the first year of the project (December 31, 2018) the contractor has incurred costs of P SEND ss the contract, including P 2,0000n cement, that is held offelle. The evan estimate of total contract costs has stayed the same. a =20 NS esti £0.00 s the stage of completion af he construction contract by reference to the Proportion that costs incurred for work performed to date bear to the estimated total costs. 7 ine the revenue, expenses, and profit for the year 2018: Ex fit Revenue 30 A P 30,000 P 18,000 P 12,000 ; EP 32,000 P 20,000 P 12.000 cP 31.333 P 18,000 P 13,333 D. Pp 33/333 P -20,000 P 13,333 SET A