Please help me by showing your solution in good accounting form. Thank you! How much is the Gross Profit/Loss Realized in 2018? Xurpas Homes entered into a construction agreement in 2018 for the construction of condominiumbuildings. The original contract price was P20,000,000 but a change order was issued in 2019 thatincreases the price by P2,000,000. The percentage of completion method is used by the company inrecognizing revenue. The following are information regarding the company.2018201917,400,0004,350,00016,350,00015,000,000Costs incurred to date10,200,000Estimated Costs to Complete10,200,0009,800,0008,760,000Billings MadeCash Collections

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How much is the Gross Profit/Loss Realized in 2018?

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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Question

Please help me by showing your solution in good accounting form. Thank you!

How much is the Gross Profit/Loss Realized in 2018?

Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium
buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that
increases the price by P2,000,000. The percentage of completion method is used by the company in
recognizing revenue. The following are information regarding the company.
2018
2019
17,400,000
4,350,000
16,350,000
15,000,000
Costs incurred to date
10,200,000
Estimated Costs to Complete
10,200,000
9,800,000
8,760,000
Billings Made
Cash Collections

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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