340 Chapter7 Progress billings Costs incurred 1,650,000 1,350,000 1,050,000 2,700,000 Collections Estimated costs to complete How much is the revenue and profit recognized in respectively? a. 1,500,000; 150,000 b. 1,580,0003; 230,000 c. 1,470,000; 120,000 d. 1,420,000; 70,000 2.
340 Chapter7 Progress billings Costs incurred 1,650,000 1,350,000 1,050,000 2,700,000 Collections Estimated costs to complete How much is the revenue and profit recognized in respectively? a. 1,500,000; 150,000 b. 1,580,0003; 230,000 c. 1,470,000; 120,000 d. 1,420,000; 70,000 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:nerformance obligation but expects to recover all contract
costs incurred (i.e., ignore the 'estimated costs to complete').
Noquirements:
Compute for the gross profits, revernues and costs of
construction in 20x1, 20x2 and 20x3, respectively.
Provide the journal entries under (i) traditional accounting
b.
and (ii) PFRS 15.
Determine the amounts presented in the financial statements.
C.
PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL
1. In 20x1, Johnny Co. enters into a contract to build a house for
Bravo Co. for a fixed contract price of P4,500,000. At contract
inception, Johnny Co. assesses its performance obligations in
the contract and concludes that it has a single performance
obligation that is satisfied over time. Johnny Co. determines
that the measure of progress that best depicts its performance
in the contract is the inputs method based on costs incurred.
At the end of 20x1, Johnny Co.'s records show the following:
Transcribed Image Text:340
Chapter 7
Progress billings
Costs incurred
1,650,000
1,350,000
Collections
1,050,000
Estimated costs to complete
2,700,000
How much is the revenue and profit recognized in A
respectively?
a. 1,500,0003; 150,000
b. 1,580,0003; 230,000
c. 1,470,000; 120,000
d. 1,420,000; 70,000
2.
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