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In 2019, Gracia Builders successfully building for P26M. Gracia uses the- following data are obtained on the pr Progress of work at completion At December 31, 2019 At December 31, 2020 Estimated total cost at completion At December 31, 2019 At December 31, 2020 Profit recognized to date At December 31, 2019 At December 31, 2020 2. The estimated costs to complete the bu P3,900,000 P19,500,000 a. b. 3. The total costs incurred in 2020 is P14,400,000 P15,600,000 a. b.

In 2019, Gracia Builders successfully building for P26M. Gracia uses the- following data are obtained on the pr Progress of work at completion At December 31, 2019 At December 31, 2020 Estimated total cost at completion At December 31, 2019 At December 31, 2020 Profit recognized to date At December 31, 2019 At December 31, 2020 2. The estimated costs to complete the bu P3,900,000 P19,500,000 a. b. 3. The total costs incurred in 2020 is P14,400,000 P15,600,000 a. b.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please answer No. 2 and 3 and No. 21 questions

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In 2019, Gracia Builders successfully bidded on a fixed price contract to a factory building for P26M. Gracia uses the percentage of completion method and the following data are obtained on the project: Progress of work at completion At December 31, 2019 At December 31, 2020 20% 60% Estimated total cost at completion At December 31, 2019 P19,500,000 At December 31, 2020 P24,000,000 Profit recognized to date At December 31, 2019 P1,300,000 At December 31, 2020 P1,200,000 2. The estimated costs to complete the building at 12/31/19 is P3,900,000 P19,500,000 С. P15,600,000 a. b. d. P20,800,000 3. The total costs incurred in 2020 is P14,400,000 b. P15,600,000 C. P10,500,000 a. d. P20,100,000
Transcribed Image Text:In 2019, Gracia Builders successfully bidded on a fixed price contract to a factory building for P26M. Gracia uses the percentage of completion method and the following data are obtained on the project: Progress of work at completion At December 31, 2019 At December 31, 2020 20% 60% Estimated total cost at completion At December 31, 2019 P19,500,000 At December 31, 2020 P24,000,000 Profit recognized to date At December 31, 2019 P1,300,000 At December 31, 2020 P1,200,000 2. The estimated costs to complete the building at 12/31/19 is P3,900,000 P19,500,000 С. P15,600,000 a. b. d. P20,800,000 3. The total costs incurred in 2020 is P14,400,000 b. P15,600,000 C. P10,500,000 a. d. P20,100,000
On January 1, 2018, Star Construction Company entered into a contract with KC Company to build a studio house. At that time, Star Company estimated that it would take three years and would cost them P7.2M to complete the project. The contract price is P9.2M. During 2019, Star Construction Company incurred P2,392,000 in construction costs but due to rising materials and labor costs, the outcome of the contract cannot be estimated reliably in 2019. However, at the end of 2020, Engr. Richard was certain that the total costs of the project will not exceed P9.2M. KC Company was billed 25% of the contract price in 2019. 21. The profit that should be recognized in 2019 is: C. PO P664,444 (P92,000) a. d. P2.3M b. ion work on a project with a fixed contract
Transcribed Image Text:On January 1, 2018, Star Construction Company entered into a contract with KC Company to build a studio house. At that time, Star Company estimated that it would take three years and would cost them P7.2M to complete the project. The contract price is P9.2M. During 2019, Star Construction Company incurred P2,392,000 in construction costs but due to rising materials and labor costs, the outcome of the contract cannot be estimated reliably in 2019. However, at the end of 2020, Engr. Richard was certain that the total costs of the project will not exceed P9.2M. KC Company was billed 25% of the contract price in 2019. 21. The profit that should be recognized in 2019 is: C. PO P664,444 (P92,000) a. d. P2.3M b. ion work on a project with a fixed contract
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