On January 1, 2019, Solid Company accepted a long-term construction project for an initial contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2020, 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 completed on December 31,2020 which resulted to penalty amounting to P400,000. The entity provided the following data concerning the direct costs related to the said project for 2019 and 2020: 2019 2020 Costs during the year 880,000 1,360,000 Remaining estimated costs to complete at year-end 1,320,000 560,000 1. What is the construction revenue for the year ended December 31, 2018?
On January 1, 2019, Solid Company accepted a long-term construction project for an initial contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2020, 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 completed on December 31,2020 which resulted to penalty amounting to P400,000. The entity provided the following data concerning the direct costs related to the said project for 2019 and 2020: 2019 2020
Costs during the year 880,000 1,360,000
Remaining estimated costs to complete at year-end 1,320,000 560,000
1. What is the construction revenue for the year ended December 31, 2018?
2.What is the realized gross profit for the year ended December 31, 2020?
3.What is the balance of construction in progress on December 31, 2020?
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