ted is used Determine the revenue, cost, and gross profit recognized for each of the years led Accounts) 2014-2016 under the percentage-of-completion method. 2. ry 1, 2016. Prepare the journal entries for each of the years 2014-2016 to record the information from (1). Company to mated that it 3 . 10,000. The Assuming that the outcome of the contract cannot be estimated reliably in During the 2014 but uncertainties no longer exist in 2015, determine the revenue, cost elated to the of revenue and gross profit recognized for each of the three years 2014-2016 P15,690,000. The estimated amount that is probable of being recovered is P17,500,090. 10% retention Exercise 7 - 5 (Determination of Contract Costs Incurred; Journal Entries to Record Recognition of Gross Profit) In 2015, Pyramid Builders Inc, was awarded a fixed price contract for a factory building at a price of P26,000,000. Pyramid uses the percentage-of-completion he year ended method and the following data are obtained on the project: At Dec. 31, 2015 At Dec. 31, 2016 ts Receivable; Percentage of completion 20% 60% Construction Estimated total cost at completion P19,500,000 P20,800,000 Profit recognized to date P 1,300,000 P 3,120,000 Instructions: specialized 1 . Determine the contract cost incurred in 2015 and 2016, assuming that costs ted cost to incurred are used to measure the extent of progress toward project 3 months, completion. estimate 2. Prepare the entries to record profit recognized in 2015 and 2016. Exercise 7 - 6 (Gross Profit to be Recognized) The Triad Construction Inc., a company organized three years ago, had two projects for which it reported the following as of the end of 2016: Binondo Project Pasig Project Contract price P48,000,000 P8,600,000 Cost incurred to date