Solution in good accounting form. On March 1, 2022, AGGREGATES Company enters a contract to build a hotel whichis estimated torevenue over time. Data on this project for 2022-2024 follow:cost P31,200,000.The company recognizes constructionContractCostsEst'd CostsBillings10,500,00012, 500,00014,440,000to Complete20,540,00013,156,000incurred2022202320245,460,0009,984,00015,756,000The contract contains a penalty clause that penalizes the company a reductionof P70,000 from the contract price for every week of delay.contract was delayed for 8 weeksIn 2024, theWhat is the gross profit for 2024?A. 1,164,000C.1,724,000в.1,466,400D. 1,824,000

We first need to understand the concept of revenue recognized over a period of time. When goods or…

On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31, 200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs 2022 2023 2024 Billings 10,500,000 12,500,000 14,440,000 15,756,000 incurred 5,460,000 9,984,000 to Complete 20,540,000 13,156,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 20247 A. 1,164,000 В. . 1,724,000 D. 1,824,000 1,466, 400

On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31, 200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs 2022 2023 2024 Billings 10,500,000 12,500,000 14,440,000 15,756,000 incurred 5,460,000 9,984,000 to Complete 20,540,000 13,156,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 20247 A. 1,164,000 В. . 1,724,000 D. 1,824,000 1,466, 400

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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On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Billings Costs incurred Est'd Costs to complete 2022 10,500,000 5,460,000 20,540,000 2023 12,500,000 9,984,000 13,156,000 2024 14,440,000 15,756,000 - The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks. What is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000
1.On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow:Contract BillingsCosts incurredEst’d Costs to Complete2022 10,500,000 5,460,000 20,540,0002023 12,500,000 9,984,000 13,156,0002024 14,440,000 15,756,000 -The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeksWhat is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000 2.MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below:Site Contract PriceCost IncurredEstimated Costs to CompleteBillings on ContractCollections on Billings1 5,000,000 3,750,000 - 5,000,000 5,000,0002 7,000,000 1,000,000 4,000,000 900,000…
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