XY Constructions began construction work under a three-year contract. The contract price was P700,000. XY uses the percentage of completion method for financial accounting purposes. The financial statement presentation relating to this contract at December 31, 20x1 is presented below: Balance Sheet 26,250 Accounts receivable - construction billings Construction in progress Less: Contract billings 87,500 82,250 5,250 Income Statement Income before tax on the contract recognized in 20x1 17,500

XY Constructions began construction work under a three-year contract. The contract price was P700,000. XY uses the percentage of completion method for financial accounting purposes. The financial statement presentation relating to this contract at December 31, 20x1 is presented below: Balance Sheet 26,250 Accounts receivable - construction billings Construction in progress Less: Contract billings 87,500 82,250 5,250 Income Statement Income before tax on the contract recognized in 20x1 17,500

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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Similar questions

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