Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2020, orange construction began work on a 3-yea

In 2020, Orange Construction began work on a 3-year construction project to build new performing...

80.2K

Verified Solution

Question

Accounting

image
In 2020, Orange Construction began work on a 3-year construction project to build new performing arts complex the (PCC). The PCC contract price is P 150 million. Orange uses the percentage-of-completion method of accounting. At the end of 2020, the following financial statement information indicates the results to date for the PCC: Income Statement: Revenue P? Cost of Construction 35,000,000 Gross profit P? Balance Sheet: Accounts Receivable from construction billings P 14,000,000 Construction in progress 50,000,000 Less: Billings on Construction ? Net billings in excess of construction in progress P? Cash Flow Statements: Cash Collections P46,000,000 Requirement: 1. Compute for the total revenue recognized in 2020. 2. Compute for the Billings on construction 3. Compute for the Contract asset. 4. Calculate the percentage of completion during 2020. (round off to four decimal places)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students