Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 2019 17,400,000 Costs incurred to date Estimated Costs to Complete Billings Made Cash Collections 10,200,000 10,200,000 9,800,000 8,760,000 4,350,000 16,350,000 15,000,000

Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 2019 17,400,000 Costs incurred to date Estimated Costs to Complete Billings Made Cash Collections 10,200,000 10,200,000 9,800,000 8,760,000 4,350,000 16,350,000 15,000,000

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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