ring 2009, Mason Construction, Inc. started work on a P 5,200,000 fixedprice construction contract to be completed in two years. The accounting records disclosed the following data for the year ended December 31, 2009: Cost incurred P 2,650,000Estimated cost to complete 2,720,000Progress billings 2,500,000Collections 2,000,000.
ring 2009, Mason Construction, Inc. started work on a P 5,200,000 fixedprice construction contract to be completed in two years. The accounting records disclosed the following data for the year ended December 31, 2009: Cost incurred P 2,650,000Estimated cost to complete 2,720,000Progress billings 2,500,000Collections 2,000,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve the following problem in good accounting form.
During 2009, Mason Construction, Inc. started work on a P 5,200,000 fixedprice construction contract to be completed in two years. The accounting records disclosed the following data for the year ended December 31, 2009: Cost incurred P 2,650,000Estimated cost to complete 2,720,000Progress billings 2,500,000Collections 2,000,000.
What amount of net income or loss should have been recognized in 2009?
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