On January 1, 2020, San Juan Builders Inc. accepted a long-term construction project to build a bridge. 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 contract price and construction costs for the three years of construction: Year 12/31/2020 12/31/2021 12/31/2022 Contract price as of the end of the year P10,000,000 P15,000,000 P20,000,000 Costs incurred during the year P1,000,000 P5,000,000 P8,000,000 Estimated cost to complete at the end of the year P3,000,000 P4,000,000 P2,000,000 What is San Juan Builders' realized gross profit / (loss) for the year ended December 31, 2022?

On January 1, 2020, San Juan Builders Inc. accepted a long-term construction project to build a bridge. 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 contract price and construction costs for the three years of construction: Year 12/31/2020 12/31/2021 12/31/2022 Contract price as of the end of the year P10,000,000 P15,000,000 P20,000,000 Costs incurred during the year P1,000,000 P5,000,000 P8,000,000 Estimated cost to complete at the end of the year P3,000,000 P4,000,000 P2,000,000 What is San Juan Builders' realized gross profit / (loss) for the year ended December 31, 2022?

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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