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How much is the Gross Profit/Loss Realized in 2019?

How much is the Gross Profit/Loss Realized in 2019?

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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How much is the Gross Profit/Loss Realized in 2019?

Celestial Holdings Co. began constructing a condominium on January 1, 2017 for a contract price of P2,500,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, Celestial billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction in 600,000 ? ? Progress (CIP) Est. Cost to Complete Cost incurred per year Excess of CIP over ? ? -0- 500,000 1,200,000 225,000 50,000 (250,000) Progress Billings
Transcribed Image Text:Celestial Holdings Co. began constructing a condominium on January 1, 2017 for a contract price of P2,500,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, Celestial billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction in 600,000 ? ? Progress (CIP) Est. Cost to Complete Cost incurred per year Excess of CIP over ? ? -0- 500,000 1,200,000 225,000 50,000 (250,000) Progress Billings
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