SMDC Construction signed a contract to build a building over a period 3 years for a price of P10,000,000. Information relating to the performance of the contract is summarized as follows: 201720182019contribution costs incurred during the year2,500,0002,400,0001,800,000estimated costs to complete4,500,0001,800,000-buildings during the year2,200,0002,800,0005,000,000collections during the year2,000,0002,500,0005,500,000Prepare the entries under the percentage of completion.

Percentage of Completion = Cost Incurred during a year / Total Estimated Cost ×100 Construction…

Answered: SMDC Construction signed a contract to…

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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SMDC Construction signed a contract to build a building over a period 3 years for a price of P10,000,000. Information relating to the performance of the contract is summarized as follows:

	2017	2018	2019
contribution costs incurred during the year	2,500,000	2,400,000	1,800,000
estimated costs to complete	4,500,000	1,800,000	-
buildings during the year	2,200,000	2,800,000	5,000,000
collections during the year	2,000,000	2,500,000	5,500,000

Prepare the entries under the percentage of completion.

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