How much is the Gross Profit/Loss Realized in 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much is the Gross
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb28815b7-7d35-4874-afc6-0e6f808d560e%2F798498e8-81b5-4070-bd79-c36411fd06b1%2F8eu2gw5_processed.png&w=3840&q=75)
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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