On March 1, 2022, AGGREGATES Company enters a contract to build a hotel whichTheis estimatedcostP31,200,000.company recognizes constructiontoData on this project for 2022-2024 follow:Est'd Costsrevenue over time.ContractCostsBillings10,500,00012,500,00014,440,000incurredto Complete20,540,00013,156,00020225,460,0009,984,0002023202415,756,000The contract contains a penalty clause that penalizes the company a reductionof P70,000 from the contract price for every week of delay.contract was delayed for 8 weeksIn 2024, theWhat is the gross profit for 2024?1,164,0001,466,4001,724,0001,824,000А.с.в.D.

It is observed that the given problem relates to percentage of completion method. In this method…

n March 1, 2022, AGGREGATES Company enters a contract to build a hotel which The cost P31,200,000. evenue over time. Data on this project for 2022-2024 follow: estimated to company recognizes construction Contract Costs Est'd Costs Billings 10,500,000 12,500,000 14,440,000 to Complete 20,540,000 13,156,000 incurred 2022 5,460,000 9,984,000 2023 2024 15,756,000 he contract contains a penalty clause that penalizes the company a reduction E P70,000 from the contract price for every week of delay. ontract was delayed for 8 weeks In 2024, the hat is the gross profit for 2024? 1,164,000 1,466,400 C. 1,724,000 1,824,000 D.

n March 1, 2022, AGGREGATES Company enters a contract to build a hotel which The cost P31,200,000. evenue over time. Data on this project for 2022-2024 follow: estimated to company recognizes construction Contract Costs Est'd Costs Billings 10,500,000 12,500,000 14,440,000 to Complete 20,540,000 13,156,000 incurred 2022 5,460,000 9,984,000 2023 2024 15,756,000 he contract contains a penalty clause that penalizes the company a reduction E P70,000 from the contract price for every week of delay. ontract was delayed for 8 weeks In 2024, the hat is the gross profit for 2024? 1,164,000 1,466,400 C. 1,724,000 1,824,000 D.

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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