FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 P2,000,000; Accounts Receivable P1,000,000; Construction in
Progress P3,500,000, Costs incurred to date P2,800,000. For 2019, the balances are Progress
Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000,
Costs incurred to date 5,500,000. What is the percentage of completion in 2019? (Answer
format: 1%, 20%, 50%)
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Transcribed Image Text: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 P2,000,000; Accounts Receivable P1,000,000; Construction in Progress P3,500,000, Costs incurred to date P2,800,000. For 2019, the balances are Progress Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000, Costs incurred to date 5,500,000. What is the percentage of completion in 2019? (Answer format: 1%, 20%, 50%)
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