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How much are the revenue and cost of construction recognized in 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000 AICPA - Adapted)

How much are the revenue and cost of construction recognized in 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000 AICPA - Adapted)

FINANCIAL ACCOUNTING
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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2 During 20xl, Cord Builders, Inc. started work on a P9,000.00 fixed-price construction contract. Cord appropriately uses the percentage-of-completion method in accounting for the contract. Cord's accounting records disclosed the following 20x1 20x2 Cumulative contract costs incurred 6.300,000 8,100,000 3,900,000 Estimated total costs at completion 7,800,000 How much are the revenue and cost of construction recognized 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 (AICPA-Adapted) c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000
Transcribed Image Text:2 During 20xl, Cord Builders, Inc. started work on a P9,000.00 fixed-price construction contract. Cord appropriately uses the percentage-of-completion method in accounting for the contract. Cord's accounting records disclosed the following 20x1 20x2 Cumulative contract costs incurred 6.300,000 8,100,000 3,900,000 Estimated total costs at completion 7,800,000 How much are the revenue and cost of construction recognized 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 (AICPA-Adapted) c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000
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