Question
1.Ayala Homes is a construction company who uses the percentage of completion method in accounting for its income. The company began constructing a building in
1.Ayala Homes is a construction company who uses the percentage of completion method in accounting for its income. The company began constructing a building in the year 2019 for a contract price of P5,000,000. For the year ended 2019, the company billed its clients a total of 30% of the contract price. The books of the company show the following balances: Costs incurred to date P900,000; Construction income to date P300,000. How much is the company's contract asset (liability) for the year 2019?*
2.How much is the Gross Profit/Loss Realized in 2018?*
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