Homework Help is Here – Start Your Trial Now!
Business
Accounting
percentage of completion method

percentage of completion method

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
Lake Construction Company has consistently used the percentage of completion method in recognizing income. During 2021, Lake entered into a fixed-price contract to construct an office building for P10,000,000. Information relating to the contract is as follows: As of December 31 2021 2022 Percentage of completion 20% 60% Estimated total cost at completion P 7,500,000 P 8,000,000 Income recognized (cumulative) 500,00 1,200,000 Contract costs incurred during 2022 were: 3,200,000 3,300,000 3,500,000 4,800,000 Gross profit recognized during 2022 amounted to: 100,000 300,000 600,000 700,000
Transcribed Image Text:Lake Construction Company has consistently used the percentage of completion method in recognizing income. During 2021, Lake entered into a fixed-price contract to construct an office building for P10,000,000. Information relating to the contract is as follows: As of December 31 2021 2022 Percentage of completion 20% 60% Estimated total cost at completion P 7,500,000 P 8,000,000 Income recognized (cumulative) 500,00 1,200,000 Contract costs incurred during 2022 were: 3,200,000 3,300,000 3,500,000 4,800,000 Gross profit recognized during 2022 amounted to: 100,000 300,000 600,000 700,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS