On January 1, 2018, Liquid Company accepted a long-term construction project for an initia contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2019, the contract price was increased to P3,000,000 by reason of change in the design of the project The outcome of the construction contract can be estimated reliably. The project was compl on December 31, 2020 which resulted to penalty amounting to P400,000. The entity provid the following data concerning the direct costs related to the said project for 2018 and 2019 2019 2018 Costs during the year 880,000 1,360,00 Remaining estimated costs to complete at year- 1,320,000 560,000 end
On January 1, 2018, Liquid Company accepted a long-term construction project for an initia contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2019, the contract price was increased to P3,000,000 by reason of change in the design of the project The outcome of the construction contract can be estimated reliably. The project was compl on December 31, 2020 which resulted to penalty amounting to P400,000. The entity provid the following data concerning the direct costs related to the said project for 2018 and 2019 2019 2018 Costs during the year 880,000 1,360,00 Remaining estimated costs to complete at year- 1,320,000 560,000 end
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 6P
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