Manor Construction Corporation entered into a fixed-price contract to construct an office building for P5,000,000 during the year 2021. Information relating to the contract is as follows: Year-end 2021 Year-end 2022 Percentage of completion 20% 60% Estimated total cost of completion 3,750,000 4,000,000 Income recognized (cumulative) 250,000 600,000 Contract cost incurred during 2022 was: O 1,750,000 O 2,400,000 O 1,600,000 O 1,650,000
Manor Construction Corporation entered into a fixed-price contract to construct an office building for P5,000,000 during the year 2021. Information relating to the contract is as follows: Year-end 2021 Year-end 2022 Percentage of completion 20% 60% Estimated total cost of completion 3,750,000 4,000,000 Income recognized (cumulative) 250,000 600,000 Contract cost incurred during 2022 was: O 1,750,000 O 2,400,000 O 1,600,000 O 1,650,000
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 9MC
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Transcribed Image Text:Manor Construction Corporation entered into a fixed-price contract to construct an office building for
P5,000,000 during the year 2021. Information relating to the contract is as follows:
Year-end 2021
Year-end 2022
Percentage of completion
20%
60%
Estimated total cost of completion
3,750,000
4,000,000
Income recognized (cumulative)
250,000
600,000
Contract cost incurred during 2022 was:
O 1,750,000
2,400,000
O 1,600,000
O 1,650,000
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