Homework Help is Here – Start Your Trial Now!
Business
Accounting
1,000 room hotel for P24,000,000. Among othe lowing:1.Ten percent mobilization fee (deductible e within ten days from the signing of the contrac n all billings (to be paid with the final billing, upon cance of the project); and 3.Progress billings are t cceptance. By the end of 2019, the company hac

1,000 room hotel for P24,000,000. Among othe lowing:1.Ten percent mobilization fee (deductible e within ten days from the signing of the contrac n all billings (to be paid with the final billing, upon cance of the project); and 3.Progress billings are t cceptance. By the end of 2019, the company hac

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
On September 30, 2019, STONE REACH Co., Inc. was awarded the contract to build a 1,000 room hotel for P24,000,000. Among others, the parties agreed to the following:1.Ten percent mobilization fee (deductible from "final billing") payable within ten days from the signing of the contract.2.Retention of ten per cent on all billings (to be paid with the final billing, upon completion and acceptance of the project); and 3.Progress billings are to be paid within 2 weeks upon acceptance. By the end of 2019, the company had presented one progress billing, corresponding to 10% completion, which was evaluated and accepted by the client on December 29, 2019 for payment in January of the next year. In 2019, assuming use of the percentage-of-completion method of accounting STONE REACH Co., Inc. received a total fee of
Transcribed Image Text:On September 30, 2019, STONE REACH Co., Inc. was awarded the contract to build a 1,000 room hotel for P24,000,000. Among others, the parties agreed to the following:1.Ten percent mobilization fee (deductible from "final billing") payable within ten days from the signing of the contract.2.Retention of ten per cent on all billings (to be paid with the final billing, upon completion and acceptance of the project); and 3.Progress billings are to be paid within 2 weeks upon acceptance. By the end of 2019, the company had presented one progress billing, corresponding to 10% completion, which was evaluated and accepted by the client on December 29, 2019 for payment in January of the next year. In 2019, assuming use of the percentage-of-completion method of accounting STONE REACH Co., Inc. received a total fee of
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS