Tigasin Builders Company began its construction activities in 2017. At the end of its firstyear's operation, the following projects (and other relevant information) are stilluncompleted:Collectionsthru 12/31ProjectContractActual costs Est cost toBillings thru12/31Pricethru 12/31Complete,12/31Angeles City 15,000,000Palo City10,000,0005,500,0009,000,0005,250,00012,400,0003,390,0003,100,00013,560,00017,500,000Tigasin Builders will use the cost-to-cost percentage of completion in accounting for theAngeles City project, while the cost recovery method will be used for the Palo Cityproject.1. Compute the Construction Revenue to be recognized by Tigasin Builders for theAngeles City project in 2017.2. Determine how (1) the Angeles City Project and (2) the Palo City Project will be shownon the year-end balance sheet.

Accounting for construction contracts is done in accordance with IAS- 11.

Tigasin Builders Company began its construction activities in 2017. At year's operation, the following projects (and other relevant info uncompleted: Billings thru Collections 12/31 Actual thru 1 Project Contract Price thru 12/31 Angeles City 15,000,000 Palo City 10,000,000 5,500,000 9,000,000 5,250,000 12,40 17,500,000 3,390, Tigasin Builders will use the cost-to-cost percentage of completion in Angeles City project, while the cost recovery method will be used

Tigasin Builders Company began its construction activities in 2017. At year's operation, the following projects (and other relevant info uncompleted: Billings thru Collections 12/31 Actual thru 1 Project Contract Price thru 12/31 Angeles City 15,000,000 Palo City 10,000,000 5,500,000 9,000,000 5,250,000 12,40 17,500,000 3,390, Tigasin Builders will use the cost-to-cost percentage of completion in Angeles City project, while the cost recovery method will be used

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 34E

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