Problem 1. Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 2020 Account receivable on contract P 100,000 P 300,000 Construction expense Construction in progress Partial billings on contract 105,000 192,000 122,000 364,000 100,000 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?
Problem 1. Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 2020 Account receivable on contract P 100,000 P 300,000 Construction expense Construction in progress Partial billings on contract 105,000 192,000 122,000 364,000 100,000 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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