In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM's books: Progress Billings 2,000,000 Accounts Receivable 1,000,000 Construction in Progress 3,500,000 Costs incurred to date 2,800,000 For 2019, the balances are: Progress Billings 3,000,000 Accounts Receivable 1,200,000 Construction in Progress 6,500,000 Costs incurred to date 5,500,000 WHAT IS THE PERCENTAGE OF COMPLETION IN 2019? (ANSWER IT IN A PERCENTAGE FORM) Show the solution in a good accounting form. Thank you!
In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM's books:
Progress Billings 2,000,000
Construction in Progress 3,500,000
Costs incurred to date 2,800,000
For 2019, the balances are:
Progress Billings 3,000,000
Accounts Receivable 1,200,000
Construction in Progress 6,500,000
Costs incurred to date 5,500,000
WHAT IS THE PERCENTAGE OF COMPLETION IN 2019? (ANSWER IT IN A PERCENTAGE FORM)
Show the solution in a good accounting form. Thank you!
Step by step
Solved in 2 steps
