Kindly answer this thank you weather conditions, Zevrek Co. does not expect that it can finishIn 20x1, Zevrek Co. incurs total costs of P1,350,000. Due to badimprovements in weather conditions, Zevrek Co. now believesRequirement: Compute for the revenues, costs of construction andcontract in 20x1. Information on the contract is as follows:that it is highly probable that the building will be finished on timeIn 20x2, Zevrek Co. incurs total costs of P2,260,000. Due toand the bonus will be received. The estimated costs to complete asthe building on time for it to be entitled to the bonus. Theestimated costs to complete as of the end of 20x1 are P2.4M.b. Provide the journal entries under (i) traditional accountingDetermine the amounts presented in the financial statements.gross profits in 20x1 and 20x2, respectively.of the end of 20x2 are P190,000.and (ii) PFRS 15.C.Oneroen Co. started work on an P8M fixed-price construction20x120x220x32,850,000Costs incurred per yearEstimated costs to complete3,670,0001,600,0004,275,0001,630,000Reguirement: Compute for the amounts recognized in profit or lossin 20x1, 20x2 and 20x3, respectively.Incentive payment15. On July 1, 20x1, Zevrek Co. enters into contact with acustomer for the construction of a building. The contract priceis P6M. However, Zevrek Co. is entitled to a bonus of P500,000if the building is completed within 3 years. Zevrek Co. usesthe 'cost-to-cosť method in measuring its progress on thecontract. At contract inception, Zevrek Co. estimates totalcontract costs of P4M.on time for it to be entitled to the bonus. Theprofits in 20x1 and 20x2, respectively. made in accordance with the billing schedule stated in theconstruction in 20x1, 20x2 and 20x3, respectively.contract. Information on the construction is provided below;price is P10M. Devin has an unconditional right to all billingsobligation to be satisfied over time. Devin Co. measures itsbuilding for a customer. Devin Co. identifies its performancea. Compute for the gross profits, revenues and costs ofperformance obligation but expects to recover all contractDevin Co. cannot reasonably measure the outcome of theC. Determine the amounts presented in the financial statements.13. Use the information in the preceding problem except thatcosts incurred (i.e., ignore the'estimated costs to complete').Requirement.Accounting for construction contractsacontract. Information on the construction is provided below20x320x120x23,150,000 | 5,680,000 | 7,120,0004,000,000 5,000,000 | 1,000,000a.Contract costs incurred to dateb. Billings per yearCollections on billings per year 3,600,000 4,500,000 | 1,900,000d. Estimated costs to complete(at each yr.-end)с.3,850,000 1,420,000Requirements:a. Compute for the gross profits, revenues and costs ofconstruction in 20x1, 20x2 and 20x3, respectively.b. Provide the journal entries under (i) traditional accountingand (ii) PFRS 15.C. Determine the amounts presented in the financial statements."Zero-profit method'13. Use the information in the preceding problem excep theRequirements:construction in 20x1, 20x2 and 20x3, respectively.

Percentage of Completion = Total Cost Incurred to date / Estimated Total Contract Cost

Onerous contract 14. Athena Co. started work on an P8M fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 20x3 2,850,000 Costs incurred per year Estimated costs to complete 3,670,000 1,600,000 4,275,000 1,630,000 Requirement: Compute for the amounts recognized in profit or loss in 20x1, 20x2 and 20x3, respectively.