Problem 3 The October 1, 2019, ABC Corp. enters a contract to build a sports arena which it estimated would cost P 3,744,000. ABC bills its client at cost plus 25% and recognized construction revenue on a percentage of completion basis. Data on this project for 2019, 2020 and 2021 as follows: Costs Incurred Estimated Costs To Complete P 655,200.00 2019- 2020- P 2,464,800.00 1,980,000.00 1,578,720.00 2021- 1,890,720.00 Compute for: a. ABC Corps. Realized Gross Profit on the project for 2019 is : b. ABC Corps. Realized Gross Profit(Loss) on the project for 2020 is : c. ABC Corps. Realized Gross Profit(loss) on the project for 2021 is : |

Problem 3 The October 1, 2019, ABC Corp. enters a contract to build a sports arena which it estimated would cost P 3,744,000. ABC bills its client at cost plus 25% and recognized construction revenue on a percentage of completion basis. Data on this project for 2019, 2020 and 2021 as follows: Costs Incurred Estimated Costs To Complete P 655,200.00 2019- 2020- P 2,464,800.00 1,980,000.00 1,578,720.00 2021- 1,890,720.00 Compute for: a. ABC Corps. Realized Gross Profit on the project for 2019 is : b. ABC Corps. Realized Gross Profit(Loss) on the project for 2020 is : c. ABC Corps. Realized Gross Profit(loss) on the project for 2021 is : |

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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In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,100,000 $ 2,450,000 $ 2,695,000 Estimated costs to complete as of year-end 4,900,000 2,450,000 0 Billings during the year 2,200,000 2,350,000 5,450,000 Cash collections during the year 1,900,000 2,300,000 5,800,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).2-c. In the journal below, complete the necessary journal entries for the year 2023…
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