On January 1, 2011, Arki Inc. started the construction of a building with a fixed contract price of P 10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: 12/31/201 12/31/201 2 Year 12/31/2013 1 Cost incurred during the year P 3,740,000 1,500,000 (P 250,000) 50% Realized gross profit/loss during the year P 750,000 (P 800,000) Percentage of completion as of the end of the year 37.5% 80% What is the balance of Construction in Progress on Arki Inc.'s Statement of Ginancial Rorition December 31 20132

On January 1, 2011, Arki Inc. started the construction of a building with a fixed contract price of P 10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: 12/31/201 12/31/201 2 Year 12/31/2013 1 Cost incurred during the year P 3,740,000 1,500,000 (P 250,000) 50% Realized gross profit/loss during the year P 750,000 (P 800,000) Percentage of completion as of the end of the year 37.5% 80% What is the balance of Construction in Progress on Arki Inc.'s Statement of Ginancial Rorition December 31 20132

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Description: On January 1, 2011, Arki Inc. started the construction of a building with a fixed contractprice of P 10,000,000. The outcome of the construction project can be estimated reliablyand the contractor decided to employ cost to cost method. The following

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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