Ayala homes is a construction company who uses the percentage of completion method in accounting for its income. The company began constructing a building in the year 2019 for a contract price of P5,000,000. For the year ended 2019, the company billed its clients a total of 30% of the contract price. The books of the company show the following balances: Costs incurred to date 900,000 Construction income to date 300,000 HOW MUCH IS THE COMPANY'S CONTRACT ASSET(LIABILITY) FOR THE YEAR 2019? Show your solution in a good accounting form. Thank you!
Ayala homes is a construction company who uses the percentage of completion method in accounting for its income. The company began constructing a building in the year 2019 for a contract price of P5,000,000. For the year ended 2019, the company billed its clients a total of 30% of the contract price. The books of the company show the following balances: Costs incurred to date 900,000 Construction income to date 300,000 HOW MUCH IS THE COMPANY'S CONTRACT ASSET(LIABILITY) FOR THE YEAR 2019? 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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Ayala homes is a construction company who uses the percentage of completion method in accounting for its income. The company began constructing a building in the year 2019 for a contract price of P5,000,000. For the year ended 2019, the company billed its clients a total of 30% of the contract price. The books of the company show the following balances:
Costs incurred to date 900,000
Construction income to date 300,000
HOW MUCH IS THE COMPANY'S CONTRACT ASSET(LIABILITY) FOR THE YEAR 2019?
Show your solution in a good accounting form. Thank you!
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