Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 2019 Costs incurred to date 10,200,000 17,400,000 Estimated Costs to Complete 10,200,000 4,350,000 Billings Made 9,800,000 16,350,000 Cash Collections 8,760,000 15,000,000 HOW MUCH IS THE GROSS PROFIT/LOSS REALIZED IN 2019?
Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 2019 Costs incurred to date 10,200,000 17,400,000 Estimated Costs to Complete 10,200,000 4,350,000 Billings Made 9,800,000 16,350,000 Cash Collections 8,760,000 15,000,000 HOW MUCH IS THE GROSS PROFIT/LOSS REALIZED IN 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company.
| 2018 | 2019 | |
|
Costs incurred to date |
10,200,000 | 17,400,000 |
| Estimated Costs to Complete | 10,200,000 | 4,350,000 |
| Billings Made | 9,800,000 | 16,350,000 |
| Cash Collections | 8,760,000 | 15,000,000 |
HOW MUCH IS THE GROSS
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