1 PROBLEM A. On May 4, 2016, spstelulle (The contract price that P76,000 will be deducted from the got ant The completion was dateyed for four price amounting to P1§0,000 due to Incr Information Is prosented below: | 5,250,000 aud Fen May 2018)" poration obtaine: jontract to construct a bullding. ‘contract includes # suipulation Flee for evary'w ity In the turnover of the, ‘o0ks. In 2017, ther in Increase In the contract se In the prices of Inbor and matectule. Pertinect 16 2017, | 2018 Costincurred P750,000 P1,975,000 | P1,275,000 Totalestimited cost 3,000,000 3'soo.a00 | "3490-000 Progress billings {650.000 3.337500,“ 3azsoo Cash collections '300,006 4,000,000 ; 800,000 Operatingexpenses 275,000 "388,000, ; 342.000 As of Decomber 31, 2026: veo 4, How much Is the estimated cost to complete the project? ‘! 2. What ts the percenta; of completion? noo 3. Whi 's the balance of accounts receivable? . 4 How billings over construction In progress? preva ite €X€0s3 of construction In progress over progress billings or progress (current asset or current lability) As of Decembey’31, 2017: ‘emo, How much s the revised contract price? ‘set 2. How much Is the net income for the year? { 3. How much ts billings over. wet As of December 31, 2015 the excess of construction In proj ‘construction in progress? gress Over progress billings or progress (currentasset or-current lability) “)ay)4+ Whut s the Onalcontract price ofthe project? . svmey ft Ow much ts Ge gross prafit teite recognized in the statement of comprehensive NE Income? ¥ v ie . af y i PROBLEM B. Cole construction has Janda coeract to construct a S0-sorey condominium In Malatl. The company expects to Incur P15) the contract. Cole uses the 100,000 of construction costs and earn P4,500,000 from construction revenue, ercentsgej of completion, output measure In accounting for Its i ib i — a 2016 2017 2018 Cost incurred fg P6880,000 - 7,000,690” P4.600,000 Estimated costto complete —°!" 10,150,000 6,000,000 - Engineer's estimate of completion 26% 78% 100% Progress billings i €,000,000 6,250,000 How much Is the excess of coastru 5,250,000 i billings over construction in progress as of December currentllability) $00,000,021 2. fortheyear 20177‘ ('.000.000) currentlabllity) 34.00) 4 forthe year 20187 100.0% i iction In progress over Hrogress bllings or progress How much {s the excess of construction In progress ov ‘billings over construction In progress'as of December acl ‘What {s the gross profit (loss) to be rej 31, 20167" (current asset or ‘What Is the gross profit (loss) to be reporteid in the: statement of comprehensive income progress billings or progross 4, 20177 * (current asset or Ported in the statement of comprehensive Incomeseri val emma Both'e schedule suminerizes th 1000, During th ‘oustoiner and | ¢ ordera Ini2016: Cost fheurrgd in: 2016 Basle vontract 9,000,000 Change order #1 50,000 Change order #2 . Change order #3 400,000, Change order 4 125,000 sw.008 1, Mow mch ts the'gross complat{on niethod? —4y1,031 PRODLEM D, A construction compony hi At the beptnning of 2026, one pr building at the beginning éftho yoar: wndod Contract prtee Cost Incurred o-4 storod at the site to Ustimated coststo complato, 4/1/46 During 2016, & Cost incurred to date. Cost to complete, 12/31/16 1. What ts tho realized gross profit (loss) to be reported for the percentage of completion? yb obo Stee Construction Com epnebruction pePiod i he contractor /1/16 (inch 180,000 worth of inaterials bo used In 207'to complotu th project) Pany enters Into a dontiact to conptyuct a 48+ ‘change ofdara are made to to | Of the changes. The following | ‘Soceptad Botlunatad costs to Contract price completa, P20,009,000 40,000,000 50,000 125,000 59,000 . 300,000 " 600,000 fol 106,000 Ining,ve —— roersp9g 08451000 t48 0.000 Pronlt to.be rocogulzod for the yelur 2016 under the percentage of contract for thejconstruction of an office building. Ject Iy In progross, he followlng data describes the status of the | 6,300,009 4,425,000 4,075,000 ‘he following data wore obtilhe with respoct to tho same bullding: | P3,040,000 1,960,000 year 2046 using the I ue i foo, "ose 2g ws dole ! . { 10% ete 7 ee. 00.908 ; anes fac” 490” 209” teast cost (oncor Cy a40.0000 = (yaya.noe) \stmistte) Garay). Net 0007 | 90,000 00,008 ; ¥200,000 | " AME Go-go ; 00,000 Hing 0400 i HO. (aaon00) * (200.0001 7) tt Pe i ‘10400 resco F109 VOM ACAAL MLNS 4 cough Dene ir: : i b é ie i el ae Uiagty ox powerave - GO IN CURRED