Brooksville Construction began a construction project in 20x5. The contract price was P1,250,000,and the estimated costs were P1,000,000. Data for each year of the contract are as follows: 20x5 20x6 20x7Costs incurred during the yearP 250,000P 600,000P 190,000Estimated costs to complete750,000212,500-0-Partial billings375,000500,000375,000Collections187,500469,000593,500Assuming Brooksville uses the percentage-of-completion method of revenue recognition, determine:What is the balance of Construction in Progress at the end of 20x5.

Construction in progress means that much of value of the construction which has been incurred up to…

Answered: What is the balance of Construction in…

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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Brooksville Construction began a construction project in 20x5. The contract price was P1,250,000,

and the estimated costs were P1,000,000. Data for each year of the contract are as follows:

	20x5	20x6	20x7
Costs incurred during the year	P 250,000	P 600,000	P 190,000
Estimated costs to complete	750,000	212,500	-0-
Partial billings	375,000	500,000	375,000
Collections	187,500	469,000	593,500

Assuming Brooksville uses the percentage-of-completion method of revenue recognition, determine:

What is the balance of Construction in Progress at the end of 20x5.

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