Gem construction company was working on a contract and it uses the percentage-of- completion method and it was working on a contract for P3,700,000. Other details for the year as follows: Billings during the year=P1,650,000 Costs incurred during the year=P1,800,000 Estimated costs to complete as of December 31=P1,200,000 Collections during the year=P975,000 Find the reporting gross profit for the year.
Gem construction company was working on a contract and it uses the percentage-of- completion method and it was working on a contract for P3,700,000. Other details for the year as follows: Billings during the year=P1,650,000 Costs incurred during the year=P1,800,000 Estimated costs to complete as of December 31=P1,200,000 Collections during the year=P975,000 Find the reporting gross profit for the year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 26E
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![Gem construction company was working on a contract and it uses the percentage-of-
completion method and it was working on a contract for P3,700,000.
Other details for the year as follows:
Billings during the year=P1,650,000
Costs incurred during the year=P1,800,000
Estimated costs to complete as of December 31=P1,200,000
Collections during the year=P975,000
Find the reporting gross profit for the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b1ee6bc-63fa-4a59-9fa3-b01c4ba62abb%2F98435e53-af2d-4a02-8801-62a1a5711732%2Fw90jhr_processed.png&w=3840&q=75)
Transcribed Image Text:Gem construction company was working on a contract and it uses the percentage-of-
completion method and it was working on a contract for P3,700,000.
Other details for the year as follows:
Billings during the year=P1,650,000
Costs incurred during the year=P1,800,000
Estimated costs to complete as of December 31=P1,200,000
Collections during the year=P975,000
Find the reporting gross profit for the year.
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