Problem 4: Strong Construction Company was contracted on July 1, 2018 to construct a medium rise condominium for a contract price of P30M. The building is expected to be completed in 3 years. Financial information from the records of Strong Construction Company for 2018, 2019 and 2020 are given below: 2018 2019 2020 Contract costs incurred Est. costs to complete Billings during the year 7,800,000 18,200,000 8,500,000 17,200,000 6,250,000 15,000,000 6,400,000 6,500,000 Requirement: Determine the amount to be reported as contract revenue, contract costs and profit for 2018, 2019 and 2020. Show all computations in good form.
Problem 4: Strong Construction Company was contracted on July 1, 2018 to construct a medium rise condominium for a contract price of P30M. The building is expected to be completed in 3 years. Financial information from the records of Strong Construction Company for 2018, 2019 and 2020 are given below: 2018 2019 2020 Contract costs incurred Est. costs to complete Billings during the year 7,800,000 18,200,000 8,500,000 17,200,000 6,250,000 15,000,000 6,400,000 6,500,000 Requirement: Determine the amount to be reported as contract revenue, contract costs and profit for 2018, 2019 and 2020. Show all computations in good form.
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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VIEWStep 2 Calculation of Percentage Completion of Contract
VIEWStep 3 Calculation of Contract Revenue, Contract Cost and Contract Profit for 2018
VIEWStep 4 Calculation of Contract Revenue, Contract Cost and Contract Profit for 2019
VIEWStep 5 Calculation of Contract Revenue, Contract Cost and Contract Profit for 2020
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