6. Adler Construction Co. uses the percentage-of-completion (over time) method. In 20x4, Adler began work on a contract for P3,300,000 and it was completed in 20x5. Data on the costs are: Year Ended December 31 20x4 20x5 P840,000 Costs incurred..... Estimated costs to complete.... P1,170,000 780,000 For the years 20x4 and 20x5, Adler should recognize gross profit of 20x5 P810,000P480,000 P810,000P1,290,000 20x4 20x4 P-0- P774,000P516,000 20x5 P1,290,000 C. d. a. b. 7. AJD Company recognizes construction revenue and expenses using the percentage of completion (over time) method. During 20x4, a single long-term project was begun which continued through 2005. Information on the project were as follows: 20x4 20x5 Accounts Receivable from P 200,000 P 600,000 construction contract.. Construction expenses. Construction in progress. Partial billings on contract. 210,000 244,000 200,000 384,000 728,000 840,000 The profit recognize from the long-term construction contract should amount to: 20x5 20x420x5 20x4 P 44,000 P456,000 44,000 200,000 34,000 34,000 256,000 100,000 a. С. b. d.

6. Adler Construction Co. uses the percentage-of-completion (over time) method. In 20x4, Adler began work on a contract for P3,300,000 and it was completed in 20x5. Data on the costs are: Year Ended December 31 20x4 20x5 P840,000 Costs incurred..... Estimated costs to complete.... P1,170,000 780,000 For the years 20x4 and 20x5, Adler should recognize gross profit of 20x5 P810,000P480,000 P810,000P1,290,000 20x4 20x4 P-0- P774,000P516,000 20x5 P1,290,000 C. d. a. b. 7. AJD Company recognizes construction revenue and expenses using the percentage of completion (over time) method. During 20x4, a single long-term project was begun which continued through 2005. Information on the project were as follows: 20x4 20x5 Accounts Receivable from P 200,000 P 600,000 construction contract.. Construction expenses. Construction in progress. Partial billings on contract. 210,000 244,000 200,000 384,000 728,000 840,000 The profit recognize from the long-term construction contract should amount to: 20x5 20x420x5 20x4 P 44,000 P456,000 44,000 200,000 34,000 34,000 256,000 100,000 a. С. b. d.

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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