20x4 20x5 Cost incurred during the year. Estimated costs to complete Billings during the year. Cash collections during the year P1,300,000. P1,500,000 1,200,000 1,200,000 1,300,000 1,500,000 1,000,C00 Required: 1. Prepare the journal entries, under: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 2. Compute the due from/to customers: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 3. Compute the gross profit (loss) a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time
20x4 20x5 Cost incurred during the year. Estimated costs to complete Billings during the year. Cash collections during the year P1,300,000. P1,500,000 1,200,000 1,200,000 1,300,000 1,500,000 1,000,C00 Required: 1. Prepare the journal entries, under: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 2. Compute the due from/to customers: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 3. Compute the gross profit (loss) a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 34E
Related questions
Question
prepare the
![20x4
20x5
P1,300,000.
Cost incurred during the year
Estimated costs to complete
Billings during the year
Cash collections during the year.
P1,500,000
1,200,000
1,200,000
1,000,C00
1,300,000
1,500,000
Required:
1. Prepare the journal entries, under:
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
2. Compute the due from/to customers:
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
3. Compute the gross profit (loss)
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
IY - Inc omplete Data:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6b6a50-7ddf-4af3-a6e8-fa2e3ba021aa%2F215a8fd0-6256-4087-8694-f038359c5b71%2F8uw8w2g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:20x4
20x5
P1,300,000.
Cost incurred during the year
Estimated costs to complete
Billings during the year
Cash collections during the year.
P1,500,000
1,200,000
1,200,000
1,000,C00
1,300,000
1,500,000
Required:
1. Prepare the journal entries, under:
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
2. Compute the due from/to customers:
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
3. Compute the gross profit (loss)
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
IY - Inc omplete Data:
![Vl - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss)
NeCombs Contractors received a contract to construct a mental health facility for P2,500,.000.
Construction was begun in 20x4 and completed in 20x5. Cost and other data are presented
below:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6b6a50-7ddf-4af3-a6e8-fa2e3ba021aa%2F215a8fd0-6256-4087-8694-f038359c5b71%2Fihjetrg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Vl - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss)
NeCombs Contractors received a contract to construct a mental health facility for P2,500,.000.
Construction was begun in 20x4 and completed in 20x5. Cost and other data are presented
below:
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