The loss that Creative Construction Company should have recognized in 2019 is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Creative Construction Company has consistently used the percentage of completion method of recognizing revenue. During 2019, Creative started work on a P15M fixed price construction contract. The accounting records disclosed the following data for the year ended December 31, 2019.
Contract Costs incurred
P4,650,000
Estimated costs to complete
P10,850,000
Progress Billings
15,500,000
Collections
P3,500,000
15. The loss that Creative Construction Company should have recognized in 2019 is
a. P150,000
b. P500,000
C. P350,000
d P1,150,000
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