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A Corporation began construction work in 2019 for a project with a contract price of P8,000,000. The Corporation uses the percentage-of-completion (Over time) method. The financial statements for 2019 relating to the contract shows the following: Accounts receivable               P500,000 Construction in progress       1,600,000 Progress billings to date        1,500,000 Gross profit earned in               200,000   1.) Compute the cash collections for the year 2019 2.) Compute the costs incurred to date on the year 2019.

A Corporation began construction work in 2019 for a project with a contract price of P8,000,000. The Corporation uses the percentage-of-completion (Over time) method. The financial statements for 2019 relating to the contract shows the following: Accounts receivable               P500,000 Construction in progress       1,600,000 Progress billings to date        1,500,000 Gross profit earned in               200,000   1.) Compute the cash collections for the year 2019 2.) Compute the costs incurred to date on the year 2019.

FINANCIAL ACCOUNTING
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 Corporation began construction work in 2019 for a project with a contract price of P8,000,000. The Corporation uses the percentage-of-completion (Over time) method. The financial statements for 2019 relating to the contract shows the following:

Accounts receivable               P500,000

Construction in progress       1,600,000

Progress billings to date        1,500,000

Gross profit earned in               200,000

 

1.) Compute the cash collections for the year 2019

2.) Compute the costs incurred to date on the year 2019.

 
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