Problem 4On March 1, 2022, AGGREGATES Company enters a contract to build a hotel whichis estimatedrevenue over time.tocostP31,200,000.Thecompany recognizesconstructionData on this project for 2022-2024 follow:ContractCostsEst'd CostsBillings10,500,00012,500,000to Complete20,540,000incurred20225,460,0009,984,00015,756,000202313,156,000202414,440,000The contract contains a penalty clause that penalizes the company a reductionof P70,000 from the contract price for every week of delay.In 2024,thecontract was delayed for 8 weeksWhat is the gross profit for 2024?1,164,0001,466,4001,724,0001,824,000A.c.в.D.Problem 5MOC Construction Company started work on three job sites during theAny costs incurred are expected to be recoverable.currentData relating toyear.the three jobs are given below:SiteContractCostEstimated CostsBillings onCollectionsPriceIncurredto CompleteContracton Billings5,000,0007,000,0002,500,0003,750,0001,000,0005,000,000900,0005,000,000900,000| 4,000,0001,000,0001,000,0001,500,0001,000,000If the company records revenue over time, how much must be shown as currentasset in the balance sheet of MOC Construction Company as of December 31?5,500,000500,000А.C.250,000100,000в.D.If the company records revenue at a point in time, how much must be shown ascurrent asset in the balance sheet of MOC Construction Company as of December31?5,100,000250,000100,000A.C.В.500,000D.PIEWICAT

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Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 5,460,000 9,984,000 15,756,000 2022 2023 13,156,000 2024 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? A. 1,164,000 в. c. 1,724,000 1,824,000 1,466, 400 D. Problem 5 PIR

Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 5,460,000 9,984,000 15,756,000 2022 2023 13,156,000 2024 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? A. 1,164,000 в. c. 1,724,000 1,824,000 1,466, 400 D. Problem 5 PIR

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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