Letter C is the correct answer, please provide complete solution. During 20x1, Cord Builders, Inc. started work on a P9,000,000fixed-price construction contract. Cord appropriately uses thepercentage-of-completion method in accounting for thecontract. Cord's accounting records disclosed the following:20x22.20x1Cumulative contract costs incurred3,900,0006,300,000Estimated total costs at completion7,800,0008,100,000How much are the revenue and cost of construction recognized in20x2, respectively?a. 2,220,000; 2,150,000b. 2,520,000; 2,400,000c. 2,520,000; 2,420,000d. 2,500,000; 2,400,000(AICPA-Adapted)

Under the percentage-of-completion method, revenue is recognized periodically on the basis of the…

2. During 20x1, Cord Builders, Inc. started work on a P9,000.000 fixed-price construction contract. Cord appropriately uses the percentage-of-completion method in accounting for the contract. Cord's accounting records disclosed the following: 20x2 20x1 Cumulative contract costs incurred 3,900,000 6,300,000 Estimated total costs at completion 7,800,000 8,100,000 How much are the revenue and cost of construction recognized in 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000 (AICPA-Adapted)

2. During 20x1, Cord Builders, Inc. started work on a P9,000.000 fixed-price construction contract. Cord appropriately uses the percentage-of-completion method in accounting for the contract. Cord's accounting records disclosed the following: 20x2 20x1 Cumulative contract costs incurred 3,900,000 6,300,000 Estimated total costs at completion 7,800,000 8,100,000 How much are the revenue and cost of construction recognized in 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000 (AICPA-Adapted)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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