45.ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 20222023Costs incurred during the yearP1,200,000P6,250,000Estimated costs to complete4,800,000-Progress billings during the year1,450,0007,050,000Collections during the year800,0006,000,000 How much is the revenue to be recognized in 2023?

In construction project revenue shall be recognized on the basis of precentage of work compelete.

Answered: ABC Construction Company began work on…

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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45.

ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows:

	2022	2023
Costs incurred during the year	P1,200,000	P6,250,000
Estimated costs to complete	4,800,000	-
Progress billings during the year	1,450,000	7,050,000
Collections during the year	800,000	6,000,000

How much is the revenue to be recognized in 2023?

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