Honesty Construction is in its fourth year of business. The company has long-term construction projects and accounts for them using the percentage of completion method. Honesty Company built an apartment building at a price of P500,000. The costs and billings for this contract for the first three years are as follows: 2021 2022 2023 395,000 0 Cost incurred to date Estimated costs yet to be incurred Customer billings to date Collections of billings to date Determine the profit from construction recognized in 2022. 160,000 240,000 75,000 60,000 300,000 100,000 205,000 500,000 170,000 475,000
Honesty Construction is in its fourth year of business. The company has long-term construction projects and accounts for them using the percentage of completion method. Honesty Company built an apartment building at a price of P500,000. The costs and billings for this contract for the first three years are as follows: 2021 2022 2023 395,000 0 Cost incurred to date Estimated costs yet to be incurred Customer billings to date Collections of billings to date Determine the profit from construction recognized in 2022. 160,000 240,000 75,000 60,000 300,000 100,000 205,000 500,000 170,000 475,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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