Use the following information for #12-413: Eagle Homes had the following balances in its accounts at the end of the year 2018, the first year of construction of a condominium unit with a contract price of P3,500,000: 2018 2019 Construction in Progress Progress Billing s to date Contract Asset (Liability) Costs Incurred for the year The project was completed in 2019. ? 1,200,000 3,500,000 150,000 1,100,000 1,900,000

Use the following information for #12-413: Eagle Homes had the following balances in its accounts at the end of the year 2018, the first year of construction of a condominium unit with a contract price of P3,500,000: 2018 2019 Construction in Progress Progress Billing s to date Contract Asset (Liability) Costs Incurred for the year The project was completed in 2019. ? 1,200,000 3,500,000 150,000 1,100,000 1,900,000

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 9MC

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GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows: 2021. 2022 Partial billing on contract 1,000,000. 4,200,000 Accounts receivable 1,000,000 3,000,000 Construction cost 1,050,000 1,920,000 Construction in progress 1,220,000 3,640,000 What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively? 2021 2022 A.220,000. 2,280,000 B.170,000. 500,000 C.220,000. 1,000,000 D.170,000. 1,280,000
Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 Account receivable on contract 100,000 Construction expense 105,000 Construction in progress 122,000 Partial billings on contract 100,000 2020 Account receivable on contract 300,000 Construction expense 192,000 Construction in progress 364,000 Partial billings on contract 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?
How much is the Gross Profit/Loss Realized in 2018? Celestial Holdings Co. began constructing a condominium on January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, Celestial billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction in Progress Estimated Cost to Complete 300,000 Cost Incurred 250,000 600,000 112,500 Excess of CIP over PB 25,000 (125,000)
How much is the contract revenue to date in the year 2019? Double Dragon receives a contract to build a building over a period of 3 years for a price of P14,000,000. Information relating to the performance of the contract is summarized as follows: 2019 Construction Costs incurred- yearly 3,000,000 4,840,000 3,360,000 2017 2018 Estimated Costs to Complete 7,000,000 3,360,000 Billings during the year 2,400,000 5,200,000 6,400,000 Collections during the year 2,000,000 5,400,000 6,600,000
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!
Celestial Holdings Co. began constructing a condominium in January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, Celestial billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction in progress 300,000 ? ? Estimated cost to complete ? ? - Cost incurred 250,00 600,000 112,500 Excess of CIP over PB 25,000 (125,000) How much is the Gross Profit/Loss Realized in 2018? Show your good accounting form. Thank you!
Problem 1. Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 2020 P 100,000 105,000 122,000 Account receivable on contract P 300,000 Construction expense Construction in progress 192,000 364,000 Partial billings on contract 100,000 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?
Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2023, a single long-term project was begun, which continued through 2025. Information on the project follows: 2023 $100,000 2024 $300,000 12/31 Accounts Receivable balance 125,000 162,000 Construction expenses for year Gross Profit recognized in year Billings during year 52,000 100,000 100,000 420,000 The 12/31/24 CIP balance is: Select one: a.$139,000 b.$452,000 c.$187,000 d.$152,000 e.$439,000
Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
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? PLEASE PROVIDE THE ANSWER WITH COMPLETE SOLUTION WRITTEN IN GOOD ACCOUNTING FORM.
In 2019, DJ Builders Construction agreed to construct an apartment building at a price of P2,000,000. The information relating to the costs and billings for the contract is as follows: 2019 Direct and allocable costs to date.. Estimated costs yet to be incurred. Customer billings each year......... Collection of billings each year. ...P 560,000 P 1,040,000 ..750,000 .560,000 2020 1,200,000 400,000 560,000 640,000 2021 P1,570,000 -0- 730,000 840,000 During 2020 the customer agrees to a variation with increases expected revenue from the contract by P40,000 and causes additional costs of P20,000. At the end of 2020 there are materials stored on site for use in 2021 which cost P16,000 during the period. Required: A. Prepare journal entries each year using: 1. Percentage-of-completion method/Over Time 2. Cost recovery method of construction accounting (Hybrid Method or Zero-profit Approach).
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%)