25) Brand Constructions began operation in 20x8. Construction activities for the first year is shown below....
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25) Brand Constructions began operation in 20x8. Construction activities for the first year is shown below. All contract are with different customers, and any work remaining at December 31, 20x8 is expected to be completed in 20x9. Brand uses the cost-to-cost percentage of completion in accounting for its projects. Project Contract price Billings to dateCollections to date Actual costs to dateAdditional cost to complete 560,000 360,000 340,000 450,000 130,000 504,000 670,000 210,000 126,000 520,000 440,000 330,000 1,750,000 990,000 906,000 One Two 220,000 Three 500,000 Totals 1,080,000 634,000 Assume that Branch uses the cost recovery method instead, calculate the aggregate net profit recognized in the 20x8 income statement for these projects. a. P190,000 b. P230,000 c. P170,000 d. P178,000 25) Brand Constructions began operation in 20x8. Construction activities for the first year is shown below. All contract are with different customers, and any work remaining at December 31, 20x8 is expected to be completed in 20x9. Brand uses the cost-to-cost percentage of completion in accounting for its projects. Project Contract price Billings to dateCollections to date Actual costs to dateAdditional cost to complete 560,000 360,000 340,000 450,000 130,000 504,000 670,000 210,000 126,000 520,000 440,000 330,000 1,750,000 990,000 906,000 One Two 220,000 Three 500,000 Totals 1,080,000 634,000 Assume that Branch uses the cost recovery method instead, calculate the aggregate net profit recognized in the 20x8 income statement for these projects. a. P190,000 b. P230,000 c. P170,000 d. P178,000
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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