Galaxy Corp. recognizes construction revenue and expenses using the percentage-of-completion method. During 2012, a single long-term project was begun, which continued through 2013. Annual Information on the project follows: Accounts receivable from construction contract Construction expenses Construction in progress Partial Billings on contract 2012 Php200,000 210,000 244,000 200,000 2013 Php600,000 384,000 728,000 840,000
Galaxy Corp. recognizes construction revenue and expenses using the percentage-of-completion method. During 2012, a single long-term project was begun, which continued through 2013. Annual Information on the project follows: Accounts receivable from construction contract Construction expenses Construction in progress Partial Billings on contract 2012 Php200,000 210,000 244,000 200,000 2013 Php600,000 384,000 728,000 840,000
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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Question
Profit recognized from the long-term construction in 2013 should be:
a. P344,000
b. P310,000
c. P100,000
d. P134,000
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