Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following data were taken from the company’s files (see image below). 1.What is the Percentage of completion in 2019? 2.Using the same information above, how much is the cost incurred in 2019? 3.Using the same information above, how much is the revenue to be recognized in 2020? 4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020? 5. Using the same information above, how much is the income to be recognized in 2020?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following data were taken from the company’s files (see image below).

1.What is the Percentage of completion in 2019?

2.Using the same information above, how much is the cost incurred in 2019?

3.Using the same information above, how much is the revenue to be recognized in 2020?

4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020?

5. Using the same information above, how much is the income to be recognized in 2020?

 
2019
2020
Contract Costs
3,136,418
Percentage of Completion
Estimated Cost to Complete
?
60%
6,004,024
3,091,616
Income Recognized to Date
98,994
?
Transcribed Image Text:2019 2020 Contract Costs 3,136,418 Percentage of Completion Estimated Cost to Complete ? 60% 6,004,024 3,091,616 Income Recognized to Date 98,994 ?
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4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020?

5. Using the same information above, how much is the income to be recognized in 2020?

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