To answer, please refer to the picture.Question: How much must be shown as current asset (cost of uncompleted contract in excess of billings) in the balance sheet of SM Development as of December 31, 2018? COst to7. SM Development commenced doing business on January 1, 2018. Constructionactivities for the first year of operations are shown below:All contract costs are with different customers and any work remaining atDecember 31, 2018, is expected to be completed in 2019.CashContractcosts incurred additionalthrough12/31/2018EstimatedBillingsthrough12/31/2018 12/31/2018P2, 000,000 P1, 800,000 P2, 480,0001,130,0002,800,000350,0002.050.000P8.300.000collectionTotalContractPricethroughcosts toProjectcompleteP 670,0002,712,000-0-P3, 000,0003,500,0002,800,0002,000,0002,400.000P13,700,000How much must be shown as current asset (cost of uncompleted contract in1,050,0002,550,0001,230,0002.000.000P7.650,000 P8,098.000678,0001,860,0001,230,0001.850.000870,000150.000P4.402,000excess of billings) in the balance sheet of SM Development as of December 31, 2018?a. РОb. P880,000c. P 1,280,000d. P400,000PABCDE

Current Assets are the group of assets held by the business or a company for the purpose of regular…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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To answer, please refer to the picture. Question: How much must be shown as current asset (cost of uncompleted contract in excess of billings) in the balance sheet of SM Development as of December 31, 2018?

COst to
7. SM Development commenced doing business on January 1, 2018. Construction
activities for the first year of operations are shown below:
All contract costs are with different customers and any work remaining at
December 31, 2018, is expected to be completed in 2019.
Cash
Contract
costs incurred additional
through
12/31/2018
Estimated
Billings
through
12/31/2018 12/31/2018
P2, 000,000 P1, 800,000 P2, 480,000
1,130,000
2,800,000
350,000
2.050.000
P8.300.000
collection
Total
Contract
Price
through
costs to
Project
complete
P 670,000
2,712,000
-0-
P3, 000,000
3,500,000
2,800,000
2,000,000
2,400.000
P13,700,000
How much must be shown as current asset (cost of uncompleted contract in
1,050,000
2,550,000
1,230,000
2.000.000
P7.650,000 P8,098.000
678,000
1,860,000
1,230,000
1.850.000
870,000
150.000
P4.402,000
excess of billings) in the balance sheet of SM Development as of December 31, 2018?
a. РО
b. P880,000
c. P 1,280,000
d. P400,000
PABCDE

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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