Gem construction company was working on a contract and it uses the percentage-of- completion method and it was working on a contract for P3,700,000. Other details for the year as follows: Billings during the year=P1,650,000 Costs incurred during the year=P1,800,000 Estimated costs to complete as of December 31=P1,200,000 Collections during the year=P975,000 Find the reporting gross profit for the year.
Gem construction company was working on a contract and it uses the percentage-of- completion method and it was working on a contract for P3,700,000. Other details for the year as follows: Billings during the year=P1,650,000 Costs incurred during the year=P1,800,000 Estimated costs to complete as of December 31=P1,200,000 Collections during the year=P975,000 Find the reporting gross profit for the year.
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 26E
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