ARTS-PRTC CPA Review

CONSTRUCTION CONTRACTS
PAS 11
AFAR MICHAEL B.BONGALONTA,CPA,MICB,MBA

CONSTRUCTION CONTRACTS

1. Project 1 420, 000

(240, 000)
(120, 000)
60, 000
X 2/3
40, 000

Project 2 300, 000

(280, 000)
( 40, 000)
(20, 000)

2. Percentage of completion = 40, 000 – 20, 000 = 20, 000 gain

3. Contract Price 9, 000, 000

Estimated TC @ Completion 8, 100, 000
900, 000
Percentage of Completion 63/81
700, 000- Beginning 2010

Contract Price 9, 000, 000

Estimated TC @ Comp ’08 7, 800,000
1, 200, 000
POC ’08 39/78 600, 000 – Beginning 2009
Income 100, 000

4. CIP 2010 CIP 2009

364, 000 - 122, 000= 192, 000 (Cost of 2010) = 50, 000

5. 2009 20% 2010 8, 000, 000 x 60%= 4, 800, 000

2010 60% 2009 7, 500, 000 x 40%= 1, 500, 000
40% 3, 300, 000

%= Cost to Date/ Estimated cost at completion

6. 100, 000 Loss

7. Current 300, 000 Left
8. 0
9. 13, 333
10. Cost Plus Fixed Fee
POC= 700/2100 = 1/3
11. 47, 000-15, 000= 32, 000
12. 160, 000
CIP
13. 4, 000, 000 4, 250, 000
4, 250, 000 (250, 000)
(250, 000) 4, 000, 000
(3, 600, 000)
 400, 000 CURRENT ASSETS

14. 20%
15. 62, 500 CURRENT ASSETS