The loss that Creative Construction Company should have recognized in 2019 is

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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