Question
In 2021, ABC Company agreed to construct a commercial building at a price of P7,500,000. ABC uses the percentage of completion method. The information relating
In 2021, ABC Company agreed to construct a commercial building at a price of P7,500,000. ABC uses the percentage of completion method. The information relating to the costs and billings for the contract were as follows:
| 2021 | 2022 | 2023 |
Cost incurred to date | P2,100,000 | P4,500,000 | P5,887,500 |
Estimated cost to complete | 3,900,000 | 1,500,000 | 0 |
Progress billings to date | 1,125,000 | 3,000,000 | 7,500,000 |
Collection to date | 900,000 | 2,400,000 | 7,050,000 |
How much is the contract asset (liability) as of December 31, 2022 using View 1 of the PIC?
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
