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 2009, costs of P1,800,000 were incurred representing 30% of total expected costs Prepare the necessary entries for 2009 to recognize gross profit for the year assuming the firm uses the (1) completed -contract method. (2) percentage -of-completion method. In 2009, Mandaluyong Builders began construction work under a three-year contract at a price of P7,525,000. The firm uses the percentage -of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to the total estimated costs for completing the contract. The financial statement presentations relating to this contract on December 31, 2009, are: Balance Sheet Accounts receivable Construction in progress Less progress billings Income Statement Gross profit on construction contracts Determine the (1) cash collected in 2009. (2) estimated income on the construction contract. P602,000 562,000 P150,500 40,000 P301,000