Under the accrual basis rental income of EL Company for the calendar year 2020 is P600,000. Additional information regarding rental income are presented below:                  Unearned rental income, January 1, 2020                            P50,000                Unearned rental income, December 31, 2020                     75,000                Accrued rental income, January 1, 2020                                 30,000                Accrued rental income, December 31, 2020                         40,000 Under the cash basis, how much rental income should be reported by EL Company in year 2020? Group of answer choices   d. P655,000   c. P625,000   b. P615,000   a. P585,000

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.