CHAIN PROBLEM In 2020, MYIESHA Construction began work on a 3-year contract. The contract price was P 6,000,000. MYIESHA uses the percentage-of-completion method/over time for financial accounting purposes. The financial statement presentation relating to this contract at December 31, 2020 was as follows: BALANCE SHEET Accounts receivable-construction contracts 129,000 Construction in progress 390,000 Less: Contract Billings 369,000 Cost of uncompleted contract in excess of billings 21,000 INCOME STATEMENT Gross profit (before tax) recognized in 2020 109,200 Enter the letter of your answer. Use capital letters only. 1. How much was collected in 2020? А. 21,000 B. 129,000 C. 240,000 D. 369,000 2. What is the percentage of completion for the year ended? A. 6.5% B. 13% C. 28% D. 100% 3. What was the initial estimated gross profit on the contract? A. 109,200 B. 280,800 С. 390,000 D. 1,680,000 Please refer to the picture below to answer the question.
CHAIN PROBLEM In 2020, MYIESHA Construction began work on a 3-year contract. The contract price was P 6,000,000. MYIESHA uses the percentage-of-completion method/over time for financial accounting purposes. The financial statement presentation relating to this contract at December 31, 2020 was as follows: BALANCE SHEET Accounts receivable-construction contracts 129,000 Construction in progress 390,000 Less: Contract Billings 369,000 Cost of uncompleted contract in excess of billings 21,000 INCOME STATEMENT Gross profit (before tax) recognized in 2020 109,200 Enter the letter of your answer. Use capital letters only. 1. How much was collected in 2020? А. 21,000 B. 129,000 C. 240,000 D. 369,000 2. What is the percentage of completion for the year ended? A. 6.5% B. 13% C. 28% D. 100% 3. What was the initial estimated gross profit on the contract? A. 109,200 B. 280,800 С. 390,000 D. 1,680,000 Please refer to the picture below to answer the question.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
CHAIN PROBLEM
In 2020, MYIESHA Construction began work on a 3-year contract. The contract price was P 6,000,000. MYIESHA uses the percentage-of-completion method/over time for financial accounting purposes. The financial statement presentation relating to this contract at December 31, 2020 was as follows:
BALANCE SHEET
Accounts receivable -construction contracts
129,000
Construction in progress
390,000
Less: Contract Billings
369,000
Cost of uncompleted contract in excess of billings
21,000
INCOME STATEMENT
Gross profit (before tax) recognized in 2020
109,200
Enter the letter of your answer. Use capital letters only.
1. How much was collected in 2020?
А. 21,000
B. 129,000
C. 240,000
D. 369,000
2. What is the percentage of completion for the year ended?
A. 6.5%
B. 13%
C. 28%
D. 100%
3. What was the initial estimated gross profit on the contract?
A. 109,200
B. 280,800
С. 390,000
D. 1,680,000
Please refer to the picture below to answer the question.
Transcribed Image Text:35.In 2020, MYIESHA Construction began work on a 3-year contract. The contract price
was P 6,000,000. MYIESHA uses the percentage-of-completion method/over time for
financial accounting purposes. The financial statement presentation relating to this
contract at December 31, 2020 was as follows:
BALANCE SHEET
Accounts receivable-construction contracts
129,000
Construction in progress
390,000
Less: Contract Billings
369,000
21.000
Cost of uncompleted contract in excess of
billings
INCOME STATEMENT
Gross profit (before tax) recognized in
109,200
2020
Enter the letter of your answer. Use capital letters only.
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