1. How much is the contract revenue during 2017?2. How much is the total estimated cost to complete in 2018?3. How much is the total estimated gross profit in 2018?Please refer to the picture below to answer the question. 33.Sta. Clara Construction Company has used the cost to cost the percentage ofcompletion method of recognizing revenue. In reviewing the records, Sta. Clara findsthe following information regarding a recently completed building project for which thetotal contract was P20,000,000.Gross profit (loss)Cost incurred2017400,0003,600,00020181,400,0002019(200,000)8,200,000Sta Clara wants to know how effectively the company operated during the last 3 yearson this project and, since the information is not complete, has asked you to analyze theproject as to the amount of revenue, costs, gross profit, and percemage of completionrecognized during the 3 years.

The percentage of completion method of accounting necessitates period-by-period reporting of…

Answered: much is the contract revenue during…

much is the contract revenue during 2017? 2. How much is the total estimated cost to complete in 2018? 3. How much is the total estimated gross profit in 2018? Please refer to the picture below

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. How much is the contract revenue during 2017? 2. How much is the total estimated cost to complete in 2018? 3. How much is the total estimated gross profit in 2018? Please refer to the picture below to answer the question.

33.Sta. Clara Construction Company has used the cost to cost the percentage of
completion method of recognizing revenue. In reviewing the records, Sta. Clara finds
the following information regarding a recently completed building project for which the
total contract was P20,000,000.
Gross profit (loss)
Cost incurred
2017
400,000
3,600,000
2018
1,400,000
2019
(200,000)
8,200,000
Sta Clara wants to know how effectively the company operated during the last 3 years
on this project and, since the information is not complete, has asked you to analyze the
project as to the amount of revenue, costs, gross profit, and percemage of completion
recognized during the 3 years.

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