How much is the total amount of interest earned

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Question 1 - Integrity Corporation sold an expensive car costing P2,500,000 for P3,000,000 on January 1, 2021. A 30% down payment was made and the balance is payable in 10 equal semi-annual installments of P271,970 inclusive of 5% interest, payable semi-annually starting June 30, 2021. How much is the total amount of interest earned in 2021?

Question 2 - On July 1, 2019, Great Corp. obtained a contract to construct a building. The building was estimated to be built at a total of P5,250,000 and is scheduled for completion in October 2021. The contract contains a penalty clause to the effect that the other party was to deduct P17,500 from the contract price each for each week of delay. Completion was delayed for three weeks. Below are the data pertaining to the construction period. In 2020, there was an increase in the contract price in the amount of P200,000 per cost escalation clause. Great Corp. uses the percentage of completion method.

 

2019

2020

2021

Costs incurred

P525,000

P1,932,000

P325,500

Estimated costs to complete

2,100,000

273,000

-

Billings to customers

420,000

4,567,500

1,260,000

Required - How much is the contract assets or contract liability [Due from /Due to] in 2019?

Reference no: EM133037689

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