PABC Co. started work on an P8,000,000 fixed-priceconstruction contract in 20x1. Information on the contract isas follows:20x120x2Costs incurred per year2,850,000 3,670,000Estimated costs to complete 4,275,000 1,630,000How much profit (loss) is recognized in 20x2?

Percent complete=Costs to dateCosts to date+Estimated costs to complete×100 Profit/(loss)…

ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x2 20x1 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 Costs incurred per year How much profit (loss) is recognized in 20x2?

ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x2 20x1 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 Costs incurred per year How much profit (loss) is recognized in 20x2?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

P
ABC Co. started work on an P8,000,000 fixed-price
construction contract in 20x1. Information on the contract is
as follows:
20x1
20x2
Costs incurred per year
2,850,000 3,670,000
Estimated costs to complete 4,275,000 1,630,000
How much profit (loss) is recognized in 20x2?

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