Remington Construction Company uses the percentage-of-completion method. During 2020, the company entered into a fixed-price contract to construct a building for Sherman Company for P30,000,000. The following details pertain to the contract: At December 31, 2020 25% At December 31, 2021 60% Percentage of completion Estimated total cost of contract P22,500,000 P25,000,000 Gross profit recognized to date 1,875,000 3,000,000 The amount of construction costs incurred during 2021 was
Remington Construction Company uses the percentage-of-completion method. During 2020, the company entered into a fixed-price contract to construct a building for Sherman Company for P30,000,000. The following details pertain to the contract: At December 31, 2020 25% At December 31, 2021 60% Percentage of completion Estimated total cost of contract P22,500,000 P25,000,000 Gross profit recognized to date 1,875,000 3,000,000 The amount of construction costs incurred during 2021 was
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 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...
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