Problem 2. The Jay-R Construction Corporation uses the percentage of completion method of recognizing income from long-term construction contracts. In 2018, Anthonette entered into a fixed price contract to construct a bridge for P 30,000,000. Estimated cost to complete the construction and contract costs incurred up to 2020 were as follows: Cumulative Contract Costs Estimated cost to Incurred Complete P 2,000, 000 P 16, 000, 000 As of Dec 31, 2018 As of Dec 31, 2019 As of Dec 31, 2020 11, 000, 000 5, 000, 000 11, 000, 000 20, 000, 000 1. What is the estimated percentage of completion as of December 31, 2020? 2. How much income should Jay-R Construction recognize on the above contract for the year ended December 31, 2019?

Problem 2. The Jay-R Construction Corporation uses the percentage of completion method of recognizing income from long-term construction contracts. In 2018, Anthonette entered into a fixed price contract to construct a bridge for P 30,000,000. Estimated cost to complete the construction and contract costs incurred up to 2020 were as follows: Cumulative Contract Costs Estimated cost to Incurred Complete P 2,000, 000 P 16, 000, 000 As of Dec 31, 2018 As of Dec 31, 2019 As of Dec 31, 2020 11, 000, 000 5, 000, 000 11, 000, 000 20, 000, 000 1. What is the estimated percentage of completion as of December 31, 2020? 2. How much income should Jay-R Construction recognize on the above contract for the year ended December 31, 2019?

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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