2122 S1

Q3 (a) 2020 2021 2022

contract price 20,000,000 22,000,000 22,000,000
less estimested cost
cost to date 5,200,000 12,000,000 18,000,000
estimated cost to complete 10,800,000 4,000,000 -
total cost 16,000,000 16,000,000 18,000,000
estimated Gross Profit 4,000,000 6,000,000 4,000,000
% of complete 32.50% 75% 100%
Total Gross Profit
recognized to date 1,300,000 4,500,000 4,000,000
less GP recognized in
prior year - (1,300,000) (4,500,000)
GP recognized in
current year 1,300,000 3,200,000 (500,000)

(b)
construction in process 6,800,000
material, cash, payment, ect 6,800,000

Account receivable 7,700,000

billing on construction in process 7,700,000

cash 7,500,000
account receivable 7,500,000

constructon in process(GP) 3,200,000

constructon expense 6,800,000
revenue from long term contract 10,000,000

(c)
2,020 -
2,021 -
2,022 4,000,000

Q2
payment 15,000
present value factor
(i=4%, n=5) 4.6299
present value 69,449
residual value 10,000
PV factor
(i=4%, n=5) 0.8219
8,219
Lessee’s lease liability/right-of-use asset 77,668