Solution-Compute the estimated income

Compute the estimated income

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Question - Orlie Construction Company has constructed to build an office building. The construction is scheduled to begin on January, 2013, and the estimated time of completion is July 1, 2016. The building cost is estimated to be P50,000,000 and this will be billed at P55,000,000. The following data relate to the construction period.

	2013	2014	2015	2016
Cost to date	15,000,000	25,000,000	35,000,000	50,000,000
Estimated cost to complete	35,000,000	25,000,000	15,000,000	-
Progress billing to date	7,000,000	20,000,000	35,000,000	55,000,000
Cash collected to date	7,000,000	18,000,000	30,000,000	55,000,000

Required -

1. Compute the estimated income for 2013, 2014, 2015 and 2016, assuming that the percentage of completion method is used.

2. Prepare the necessary journal entries for MYC Construction for the year 2015 and 2016.

Reference no: EM133072194

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Compute the estimated income

Reference no: EM133072194

Reference no: EM133072194

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