In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of SM recognizes construction contract under the percentage of completion method.   For the year ended 2018, the following balances were found in SM’s books: Progress Billings P2,000,000; Accounts Receivable P1,000,000; Construction in Progress P3,500,000,  Costs incurred to date P2,800,000.   For 2019, the balances are Progress Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000,  Costs incurred to date 5,500,000. What is the percentage of completion in 2019?

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
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In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of SM recognizes construction contract under the percentage of completion method.

 

For the year ended 2018, the following balances were found in SM’s books:

Progress Billings P2,000,000;

Accounts Receivable P1,000,000;

Construction in Progress P3,500,000,

 Costs incurred to date P2,800,000.

 

For 2019, the balances are

Progress Billings P3,000,000;

Accounts Receivable P1,200,000;

Construction in Progress P6,500,000,

 Costs incurred to date 5,500,000.

What is the percentage of completion in 2019?

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