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8. AYALA LAND,INC. began work on a P70 million contract in 2019 to construct an office building. During 2019, LPB uses the percentage of completion method. At 12/31/2019, the balance in certain accounts were ; construction in process, P 24.5 million; accounts receivable P 2.4 million; and billings on construction in process, P 12 million. At 12/31/2019, the estimated future costs to complete the project total P3.85 million. Prepare the entry to record the income from construction recognized in year 2019. a. Construction in Progress Construction Costs P 7,350,000 24,500,000 Construction revenue P31, 850,000 b. Construction in Progress P 7,350,000 17,150,000 Construction Costs Construction revenue C. Construction Costs P24, 500,000 P24,500,000 Construction in Progress Construction revenue P 7,350,000 17,150,000 d. Construction Costs P31,850,000 Construction revenue P24, 500,000

8. AYALA LAND,INC. began work on a P70 million contract in 2019 to construct an office building. During 2019, LPB uses the percentage of completion method. At 12/31/2019, the balance in certain accounts were ; construction in process, P 24.5 million; accounts receivable P 2.4 million; and billings on construction in process, P 12 million. At 12/31/2019, the estimated future costs to complete the project total P3.85 million. Prepare the entry to record the income from construction recognized in year 2019. a. Construction in Progress Construction Costs P 7,350,000 24,500,000 Construction revenue P31, 850,000 b. Construction in Progress P 7,350,000 17,150,000 Construction Costs Construction revenue C. Construction Costs P24, 500,000 P24,500,000 Construction in Progress Construction revenue P 7,350,000 17,150,000 d. Construction Costs P31,850,000 Construction revenue P24, 500,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please refer to the picture below to answer the question. Question: What is the journal entry to record the income from construction recognized in year 2019?
8. AYALA LAND, INC. began work on a P70 million contract in 2019 to construct an office building. During 2019, LPB uses the percentage of completion method. At 12/31/2019, the balance in certain accounts were ; construction in process, P 24.5 million; accounts receivable P 2.4 million; and billings on construction in process, P 12 million. At 12/31/2019, the estimated future costs to complete the project total P3.85 million. Prepare the entry to record the income from construction recognized in year 2019. a. Construction in Progress Construction Costs Construction revenue b. Construction in Progress P 7,350,000 24,500,000 P31, 850,000 P 7,350,000 17,150,000 Construction Costs Construction revenue C. Construction Costs P24, 500,000 P24,500,000 Construction in Progress Construction revenue P 7,350,000 17,150,000 d. Construction Costs Construction revenue Construction in Progress P31,850,000 P24, 500,000 7,350,000
Transcribed Image Text:8. AYALA LAND, INC. began work on a P70 million contract in 2019 to construct an office building. During 2019, LPB uses the percentage of completion method. At 12/31/2019, the balance in certain accounts were ; construction in process, P 24.5 million; accounts receivable P 2.4 million; and billings on construction in process, P 12 million. At 12/31/2019, the estimated future costs to complete the project total P3.85 million. Prepare the entry to record the income from construction recognized in year 2019. a. Construction in Progress Construction Costs Construction revenue b. Construction in Progress P 7,350,000 24,500,000 P31, 850,000 P 7,350,000 17,150,000 Construction Costs Construction revenue C. Construction Costs P24, 500,000 P24,500,000 Construction in Progress Construction revenue P 7,350,000 17,150,000 d. Construction Costs Construction revenue Construction in Progress P31,850,000 P24, 500,000 7,350,000
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