Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following data were taken from the company’s files (see image below).1.What is the Percentage of completion in 2019?2.Using the same information above, how much is the cost incurred in 2019?3.Using the same information above, how much is the revenue to be recognized in 2020?4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020?5. Using the same information above, how much is the income to be recognized in 2020?
Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following data were taken from the company’s files (see image below).1.What is the Percentage of completion in 2019?2.Using the same information above, how much is the cost incurred in 2019?3.Using the same information above, how much is the revenue to be recognized in 2020?4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020?5. Using the same information above, how much is the income to be recognized in 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following data were taken from the company’s files (see image below).1.What is the Percentage of completion in 2019?2.Using the same information above, how much is the cost incurred in 2019?3.Using the same information above, how much is the revenue to be recognized in 2020?4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020?5. Using the same information above, how much is the income to be recognized in 2020?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education