On January 1, 2016, AVIDA was contracted to construct a townhouse for SM Corp. for a total contract price ofP50,400,000. The building was completed by November 31, 2018. The following are the data of AVIDA:201620172018Contract cost incurred during the19,200,00015,600,000 8,700,000yearEstimated cost at completion38,400,00043,500,000 43,500,000Billing during the year19,200,00021,000,000 10,200,000The entry to record the recognized profit in 2018 includes credit to Choices:CIP 1,380,000Contract cost 8,700,000Contract revenue 10,080,000CIP 50,400,000

Using percentage method, the gross profit is recognized on the basis of percentage of costs incurred…

On January 1, 2016, AVIDA was contracted to construct a townhouse for SM Corp. for a total contract price of 50,400,000. The building was completed by November 31, 2018. The following are the data of AVIDA: 2016 2017 2018 Contract cost incurred during the 19,200,000 15,600,000 8,700,000 vear Estimated cost at completion 38,400,000 43,500,000 43,500,000 Billing during the year 19,200,000 21,000,000 10,200,000

On January 1, 2016, AVIDA was contracted to construct a townhouse for SM Corp. for a total contract price of 50,400,000. The building was completed by November 31, 2018. The following are the data of AVIDA: 2016 2017 2018 Contract cost incurred during the 19,200,000 15,600,000 8,700,000 vear Estimated cost at completion 38,400,000 43,500,000 43,500,000 Billing during the year 19,200,000 21,000,000 10,200,000

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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Subject: AFAR #41
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