8. AYALA LAND,INC. began work on a P70 million contract in 2019 to construct an office building. During 2019, LPB uses the percentage of completion method. At 12/31/2019, the balance in certain accounts were ; construction in process, P 24.5 million; accounts receivable P 2.4 million; and billings on construction in process, P 12 million. At 12/31/2019, the estimated future costs to complete the project total P3.85 million. Prepare the entry to record the income from construction recognized in year 2019. a. Construction in Progress Construction Costs P 7,350,000 24,500,000 Construction revenue P31, 850,000 b. Construction in Progress P 7,350,000 17,150,000 Construction Costs Construction revenue C. Construction Costs P24, 500,000 P24,500,000 Construction in Progress Construction revenue P 7,350,000 17,150,000 d. Construction Costs P31,850,000 Construction revenue P24, 500,000

8. AYALA LAND,INC. began work on a P70 million contract in 2019 to construct an office building. During 2019, LPB uses the percentage of completion method. At 12/31/2019, the balance in certain accounts were ; construction in process, P 24.5 million; accounts receivable P 2.4 million; and billings on construction in process, P 12 million. At 12/31/2019, the estimated future costs to complete the project total P3.85 million. Prepare the entry to record the income from construction recognized in year 2019. a. Construction in Progress Construction Costs P 7,350,000 24,500,000 Construction revenue P31, 850,000 b. Construction in Progress P 7,350,000 17,150,000 Construction Costs Construction revenue C. Construction Costs P24, 500,000 P24,500,000 Construction in Progress Construction revenue P 7,350,000 17,150,000 d. Construction Costs P31,850,000 Construction revenue P24, 500,000

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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