Redsiam, Inc. began work in 2020 on contract #3814, which provided for a contract price of P7,200,000. Other details follow: 20202021Costs incurred during the yearP1,200,000P3,675,000Estimated costs to complete, as of December 31Billings during the year3,600,0001,350,0005,400,000Collections during the year900,0005,850,000Assume that Redsiam uses the completed-contract method of accounting. The portion of thetotal gross profit to be recognized as income in 2021 is

Gross profit is that the profit a corporation makes once deducting the prices related to creating…

2020 2021 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year P1,200,000 P3,675,000 3,600,000 1,350,000 5,400,000 900,000 5,850,000 Assume that Redsiam uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2021 is

2020 2021 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year P1,200,000 P3,675,000 3,600,000 1,350,000 5,400,000 900,000 5,850,000 Assume that Redsiam uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2021 is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Garnet Corporation enters into a 4-year construction contract worth $100 million with Gold company on January 1, 2022. At the end of 2022, construction costs totaled $20 million and Garnet estimates $60 million of construction costs remain. If Garnet uses the percent of completion method to determine revenues, how much revenue will Garnet recognize in 2022 related to the construction contract?
How much is the contract revenue yo date in the year 2019?
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