PROBLEM 2 In Year 1, Golden Engineering entered into an agreement to construct an office building at a contract price of P5,100,000 . Construction data were as follows : Year 1 Year 2 Year 3 Construction costs P 750,000 P2,700,000 P 630,000 incurred Estimated costs to 3,000,000 862,500 complete Progress billings 570,000 3,600,000 930,000 Collections from client 450,000 3,300,000 1,350,000 Prepare the necessary entries for each year, assuming the firm uses the: (1) completed -contract method (2) percentage-of-completion method. PROBLEM Solidrock Construction contracted to build a ship over a two year period . The contract price was P21,000,000 with an estimate total cost of P18,400,000 . The following cost data relate to the construction period Costs Incurred Estimated Cost Cash Year in Year to Complete Billings Collected P7,000,000 P10,500,000 P11,000,000 P7,500,000 WN 11,000,000 8,000,000 9,000,000 2,000,000 4,500,000 Prepare the necessary journal entries for 1, Year 2, and Year 3 assuming Solidrock uses the percentage-of-completion method. PROBLEM 4 Sealand Construction entered into a contract to construct a floating bridge across a lake . The contract price for the bridge is P7,500,000 . During 2012 , costs of P1,800,000 were incurred representing 30% of total expected costs. Prepare the necessary entries for 2012 to recognize gross profit for the year assuming the firm uses the (1) completed -contract method (2) percentage-of-completion method. PROBLEM 5 On January 1, 2012 , Jaguar Enterprises obtained a contract to construct a building . It was estimated at the beginning of the contract that it would take three years to complete the project at an expected cost of P200,000 . The contract price was P250,000 The following information describes the status of the job at the close of production each year: Year 1 Year 2 Year 3 Actual costs incurred .........". P110,000 P120,000 P15,000 Estimated costs to complete . . ... 100,000 20,000 Billings on contract 125,000 125,000 0 Collections on contract .. .. ... 120,000 120,000 10,000 Compute the items listed below for each year assuming the use of the percentage -of completion cost -to-cost method . (Round all percentages to two decimals )