On January 1, 2018, Liquid Company accepted a long-term construction project for an initialcontract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2019, thecontract price was increased to P3,000,000 by reason of change in the design of the project.The outcome of the construction contract can be estimated reliably. The project was completedon December 31, 2020 which resulted to penalty amounting to P400,000. The entity providedthe following data concerning the direct costs related to the said project for 2018 and 2019:20192018Costs during the yearRemaining estimated costs to complete at year-880,0001,360,0001,320,000560,000endWhat is the realized gross profit for the year ended December 31, 2019?

The financial ratio that demonstrates the link between gross profit and net sales is gross profit…

On January 1, 2018, Liquid Company accepted a long-term construction project for an initia contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2019, the contract price was increased to P3,000,000 by reason of change in the design of the project The outcome of the construction contract can be estimated reliably. The project was compl on December 31, 2020 which resulted to penalty amounting to P400,000. The entity provid the following data concerning the direct costs related to the said project for 2018 and 2019 2019 2018 Costs during the year 880,000 1,360,00 Remaining estimated costs to complete at year- 1,320,000 560,000 end

On January 1, 2018, Liquid Company accepted a long-term construction project for an initia contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2019, the contract price was increased to P3,000,000 by reason of change in the design of the project The outcome of the construction contract can be estimated reliably. The project was compl on December 31, 2020 which resulted to penalty amounting to P400,000. The entity provid the following data concerning the direct costs related to the said project for 2018 and 2019 2019 2018 Costs during the year 880,000 1,360,00 Remaining estimated costs to complete at year- 1,320,000 560,000 end

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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