ABC Co. began constructing a condominium on January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, ABC Co billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction Progress 300,000 ? ? Estimated Cost to Complete ? ? - Costs Incurred 250,000 600,000 112,500 Excess of CIP over PB 25,000 (125,000) HOW MUCH IS THE GROSS PROFIT/LOSS REALIZED IN 2018? Kindly show your solution in a good accounting form. Thank you!
ABC Co. began constructing a condominium on January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, ABC Co billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction Progress 300,000 ? ? Estimated Cost to Complete ? ? - Costs Incurred 250,000 600,000 112,500 Excess of CIP over PB 25,000 (125,000) HOW MUCH IS THE GROSS PROFIT/LOSS REALIZED IN 2018? Kindly show your solution in a good accounting form. Thank you!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Co. began constructing a condominium on January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, ABC Co billed its client an additional 60% of the contract price. Data relating to the construction are as follows:
| 2017 | 2018 | 2019 | |
| Construction Progress | 300,000 | ? | ? |
| Estimated Cost to Complete | ? | ? | - |
| Costs Incurred | 250,000 | 600,000 | 112,500 |
| Excess of CIP over PB | 25,000 | (125,000) |
HOW MUCH IS THE GROSS
Kindly show your solution in a good accounting form. Thank you!
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