73. A company entered into a contract on 1 January 20X5 to build a factory. The contract price was GHS2.8m. At 31 December 20X5 the contract was certified as 35% complete. Costs incurred during the year were GHS740,000 and costs to complete are estimated at GHS1.4m. GHS700,000 has been billed to the customer but not yet paid. What amount will be included in receivables for this contract in the statement of financial position as at 31 December 20X5? A. GHS271,000 due from customers B. GHS509,000 due from customers C. GHS271,000 due to customers D. GHS509,000 due to customers
73. A company entered into a contract on 1 January 20X5 to build a factory. The contract price was GHS2.8m. At 31 December 20X5 the contract was certified as 35% complete. Costs incurred during the year were GHS740,000 and costs to complete are estimated at GHS1.4m. GHS700,000 has been billed to the customer but not yet paid. What amount will be included in receivables for this contract in the statement of financial position as at 31 December 20X5? A. GHS271,000 due from customers B. GHS509,000 due from customers C. GHS271,000 due to customers D. GHS509,000 due to customers
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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73. A company entered into a contract on 1 January 20X5 to build a factory. The contract price was GHS2.8m. At 31 December 20X5 the contract was certified as 35% complete. Costs incurred during the year were GHS740,000 and costs to complete are estimated at GHS1.4m. GHS700,000 has been billed to the customer but not yet paid. What amount will be included in receivables for this contract in the statement of financial position as at 31 December 20X5?
A. GHS271,000 due from customers
B. GHS509,000 due from customers
C. GHS271,000 due to customers
D. GHS509,000 due to customers
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