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a. What amount of income should be reported for the current year if the percentage of completion method is used for all contracts?

a. What amount of income should be reported for the current year if the percentage of completion method is used for all contracts?

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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4. The Gamboa Construction Co. started work on three jobs sites during the current year. Data relating to the three jobs are given below: Batangas Laguna San Fernando Contract price P500,000 P700,000 P250,000 Cost incurred 375,000 100,000 100,000 Estd. Cost to complete 400,000 100,000 Billings on contract 500,000 100,000 Collections 400,000 50,000 a. What amount of income should be reported for the current year if the percentage of completion method is used for all contracts?
Transcribed Image Text:4. The Gamboa Construction Co. started work on three jobs sites during the current year. Data relating to the three jobs are given below: Batangas Laguna San Fernando Contract price P500,000 P700,000 P250,000 Cost incurred 375,000 100,000 100,000 Estd. Cost to complete 400,000 100,000 Billings on contract 500,000 100,000 Collections 400,000 50,000 a. What amount of income should be reported for the current year if the percentage of completion method is used for all contracts?
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