Yellow Pty Ltd uses the percentage of completion method of accounting for constr
ID: 2386136 • Letter: Y
Question
Yellow Pty Ltd uses the percentage of completion method of accounting for construction contracts. In 2011 Yellow Pty Ltd entered into a contract to build a stadium with a contract price of $40,000,000 for Black Ltd. The details relating to the contract are as follows:2011 2012 2013
$ $ $
Costs incurred during the year 10,000,000 21,000,000 15,000,000
Estimated costs to complete at 30 June 22,000,000 15,000,000 0
Billings during the year 8,000,000 20,000,000 12,000,000
Collections during the year 8,000,000 20,000,000 12,000,000
Yellow Pty Ltd has a financial year ending on 30 June.
Required:
(a) Calculate the amount of profit to be recognised by Yellow Pty Ltd for each of the three years.
(b) Prepare journal entries for all three years, assuming that the outcome of the contract can be reliably estimated.
Note: round all figures to the nearest dollar, and leave all percentages with two decimal places.
Ration
Explanation / Answer
Yellow Pty Ltd is a private company categorized under Groceries and Related Products, Nec and located in Tullamarine, VIC, Australia. Our records show it was established in 2004 and incorporated in . Current estimates show this company has an annual revenue of $2,027,381 and employs a staff of approximately 7. Business Categories Groceries and related products, nec in Tullamarine, VICGroceries And Related Products, Nec, NskOther Grocery and Related Products Merchant WholesalersView newly formed U.S. businesses Company Contacts Is this your company? Claim This Profile Matt Chandler Managing Director Search for more contacts Yellow Pty Ltd Business Information Yellow Pty Ltd also does business as Chandlers Honey . Location Type Single Location Annual Sales (Estimated) $2,027,381 Employees (Estimated) 7 SIC Code 5149, Groceries and Related Products, NEC NAICS Code 424490, Other Grocery and Related Products Merchant Wholesalers Products, Services and Brands Information not found State of Incorporation Information not found Years in Business 7 Yellow Tail (officially typeset [ yellow tail ][1]) is a brand of wine produced by Casella Wines Pty Ltd. Casella wines is based in Yenda, Australia, which has a population of approximately 1400 people. The Casella family has produced wines since the 1820s in Italy. However in 1951 the Casella family, headed by Filippo Casella and his wife Maria, moved to Australia for a better life. YellowTail is a new wine brand and was a chance for the family winery to enter into the bottled wine market—having previously supplied bulk wine to other wineries. YellowTail was developed around the year 2000, originally marketed to export countries and became the number one imported wine to the USA by 2003. In that time the family-owned winery expanded 10 times its original size. The winery has the capacity to have approximately 300 million litres on site with more wine produced and stored elsewhere. The namesake of the brand, Yellow Tail, is the Yellow-footed Rock Wallaby (Petrogale xanthopus), a relative of kangaroos. In 2000, the Casellas joined with W.J. Deutsch & Sons, a family-owned marketing and distribution firm, in order to distribute the Yellow Tail wines in the United States. In 2001, it sold 112,000 cases, a number that jumped to 7.5 million in 2005, helped by distribution through Costco. Yellow Tail has enjoyed similar success in the UK which, in 2000, began importing more wine from Australia than from France for the first time in history. Both research and experience demonstrates that most consumers today, especially when buying New World wines, want to buy wine by variety and brand name. Young consumers in particular tend to avoid what they consider to be confusing and pretentious wine labels characteristic of some Old World wine bottles.[2]
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