PLEASE ANSWER THE NO. 4 QUESTION In 20x5, Chicago Construction began work on a three-year construction project to build a newIX - Incomplete Dataperforming arts complex (the "PAC"). The PAC contract price is P150 million. Chicago usehewpercentage-of-completion method of accounting. At the end of 20x5, the following fine Ihestatement information indicates the results to date for the PAC:Income Statement:RevenueCost of Construction.Gross profit.P 2 million35 millionP ?millionBalance Sheet:Accounts Receivable from construction billings.Construction in progress.Less: Billings on constructionNet billings in excess of construction in progressCash Flow StatementP 14 millionP.50 million(P ? million)P millionCash CollectionsP 46 millionRequired: Compute the following, placing your answer in the spaces provided and showingsupporting computations below:1. Total revenue recognized during 20x52. Billings on construction3. Net in excess of construction in progress4. Calculate the percentage of completion during 20x5

Percentage completion method:Percentage of completion refer to the method used in accounting of…

Answered: 4. Calculate the percentage of…

Business

Accounting

4. Calculate the percentage of completion during 20x5

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 18RE

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