On March 1, 2021, AST Corporation contracted to build two buildings for a total contract price of P27M. The contract specifies that payment will only occur after both buildings have been completed and transferred to the client. The stand-alone selling price of the Building No. 1 is 20M and Building No. 2 is P10M. On December 1, 2022, Building No. 1 was completed and transferred, the journal entry to record this transaction include a debit to: * Contract asset, P18M Cost of construction, P18M Account receivable, P20M Contract asset, P20M
On March 1, 2021, AST Corporation contracted to build two buildings for a total contract price of P27M. The contract specifies that payment will only occur after both buildings have been completed and transferred to the client. The stand-alone selling price of the Building No. 1 is 20M and Building No. 2 is P10M. On December 1, 2022, Building No. 1 was completed and transferred, the journal entry to record this transaction include a debit to: * Contract asset, P18M Cost of construction, P18M Account receivable, P20M Contract asset, P20M
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 1, 2021, AST Corporation contracted to build two buildings for a total contract price of
P27M. The contract specifies that payment will only occur after both buildings have been
completed and transferred to the client. The stand-alone selling price of the Building No. 1 is
20M and Building No. 2 is P10M. On December 1, 2022, Building No. 1 was completed and
transferred, the
Contract asset, P18M
Cost of construction, P18M
Contract asset, P20M
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