A Company has used the cost-to-cost percentage-of-completion (Over time) method of recognizing revenue. The following information regarding a recently completed building project for which the total contract price was P2,000,000. Description 2018 2019 2020 Gross profit (loss) P40,000 P140,000 P(20,000) Cost incurred each year 360,000 ? 820,000 What was the total estimated gross profit by the end of 2019?
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A Company has used the cost-to-cost percentage-of-completion (Over time) method of recognizing revenue. The following information regarding a recently completed building project for which the total contract price was P2,000,000.
Description |
2018 | 2019 | 2020 |
Gross |
P40,000 | P140,000 | P(20,000) |
Cost incurred each year |
360,000 | ? | 820,000 |
What was the total estimated gross profit by the end of 2019?
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- MINA CONSTRUCTION has used the cost-to-cost percentage of completion method to recognize revenue. Recently, their office was struck by fire. In trying to reconstruct all records of the company, the accountant was able to find the following information regarding a recently completed building project for which the total contract was P4,000,000. 2020 2021 2022 Gross profit (loss) each year 80,000 280,000 (40,000) Cost incurred each year 720,000 ? 1,640,000 MINA, the owner of the company, would like to find out the answers to the following questions in relation to the above data: 1. How much cost was incurred in 2021? A. 3,680,000 B. 1,640,000 C. 2,360,000 D. 1,320,000 2. What was the percentage of completion by the end of 2021? A. 90% B. 40% C. 51% D. 60% 3. What was the estimated cost to complete the project at the end of 2021? A. 3,400,000 B. 1,320,000 C. 2,040,000 D. 1,360,000Can someone help me with this problem? It is very long and I don't know how to begin this. Assume Avaya contracted to provide a customer with Internet infrastructure for $2,350,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 328,000 $ 1,830,000 Estimated costs to complete as of 12/31 1,312,000 0 Billings during the year 436,000 1,690,000 Cash collections during the year 341,000 1,785,000 Required: Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming…This problem has subparts that still need to be answered Assume Avaya contracted to provide a customer with Internet infrastructure for $2,350,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 328,000 $ 1,830,000 Estimated costs to complete as of 12/31 1,312,000 0 Billings during the year 436,000 1,690,000 Cash collections during the year 341,000 1,785,000 Required: Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time…
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