Problem 3. The Noka Construction Co. started work on three job sites during the current year. Data relating to the three jobs are given below: Site Contract Price Cost Incurred Est. Cost to Complete Billing on Contract Collection contract Cavite 500, 000 375,000 P500, 000 400, 000 Rizal 700, 000 100, 000 400, 000 100, 000 50, 000 Bulacan 250, 000 100, 000 100, 000 What amount of income should be reported for the current year if the zero profit method is used for all contracts? What amount of income should be reported for the current year if the percentage of completion method is used for all contracts? What would be the amount of construction progress to be reported on the year-end balance sheet if the percentage of completion method is used?

Problem 3. The Noka Construction Co. started work on three job sites during the current year. Data relating to the three jobs are given below: Site Contract Price Cost Incurred Est. Cost to Complete Billing on Contract Collection contract Cavite 500, 000 375,000 P500, 000 400, 000 Rizal 700, 000 100, 000 400, 000 100, 000 50, 000 Bulacan 250, 000 100, 000 100, 000 What amount of income should be reported for the current year if the zero profit method is used for all contracts? What amount of income should be reported for the current year if the percentage of completion method is used for all contracts? What would be the amount of construction progress to be reported on the year-end balance sheet if the percentage of completion method is used?

Name: Problem 3.The Noka Construction Co. started work on three job sites d
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Description: Problem 3.The Noka Construction Co. started work on three job sites during the current year. Data relating to the three jobs are given below:SiteContract Price Cost Incurred Est. Cost to Complete Billing on Contract Collection contractCavite500, 000

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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