A Company began a construction project on a building for P3,000,000. The project was completed during 2020. The accounting records disclosed the following: Description Progress billings during the year Cost incurred during the year Collections on billings during the year Estimated cost to complete 2019 2020 P1,100,000 P1,900,000 900,000 1,800,000 700,000 2,300,000 1,800,000 What is the balance of construction in progress account at the end of 2020 using overtime and point-in time method of recording revenue?

A Company began a construction project on a building for P3,000,000. The project was completed during 2020. The accounting records disclosed the following: Description Progress billings during the year Cost incurred during the year Collections on billings during the year Estimated cost to complete 2019 2020 P1,100,000 P1,900,000 900,000 1,800,000 700,000 2,300,000 1,800,000 What is the balance of construction in progress account at the end of 2020 using overtime and point-in time method of recording revenue?

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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A company has entered a construction contract on 1st January 2019. The contract will take 2 years to complete and the final contract price is OMR 6,000,000. At the end of first year 2019 the company incurred a cost of OMR 2,400,000 and 60% of work has been completed. Certificate for work completed have been issued to the value of OMR 3,600,000. It is estimated that a further cost of OMR1, 600, 000 will be incurred in the year 2020 to complete the contract. You are required to calculate the amount due from customer that will be accounted for the year 2019 a.OMR 3,400,000 b.OMR 3,600,000 c.None of the options d.OMR 3,800,000
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