Homework Help is Here – Start Your Trial Now!
Business
Accounting
VIII - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss) NeCombs Contractors received a contract to construct a mental health facility for P2,500,000. Msiuction was begun in 20x4 and completed in 20x5. Cost and other data are presented below:

VIII - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss) NeCombs Contractors received a contract to construct a mental health facility for P2,500,000. Msiuction was begun in 20x4 and completed in 20x5. Cost and other data are presented below:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

percetage of completion method (over time) using cost to cost method:

1. compute the due from to customers

Vl - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss) NeCombs Contractors received a contract to construct a mental health facility for P2,500,.000. Construction was begun in 20x4 and completed in 20x5. Cost and other data are presented below:
Transcribed Image Text:Vl - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss) NeCombs Contractors received a contract to construct a mental health facility for P2,500,.000. Construction was begun in 20x4 and completed in 20x5. Cost and other data are presented below:
20x4 20x5 P1,300,000. Cost incurred during the year Estimated costs to complete Billings during the year Cash collections during the year. P1,500,000 1,200,000 1,200,000 1,000,C00 1,300,000 1,500,000 Required: 1. Prepare the journal entries, under: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 2. Compute the due from/to customers: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 3. Compute the gross profit (loss) a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time IY - Inc omplete Data:
Transcribed Image Text:20x4 20x5 P1,300,000. Cost incurred during the year Estimated costs to complete Billings during the year Cash collections during the year. P1,500,000 1,200,000 1,200,000 1,000,C00 1,300,000 1,500,000 Required: 1. Prepare the journal entries, under: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 2. Compute the due from/to customers: a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time 3. Compute the gross profit (loss) a. Percentage of completion (over time) method using cost-to-cost method b. Cost recovery method (also known as zero-profit approach) or point in time IY - Inc omplete Data:
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS