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Question - GG Construction Company began a construction project on a building for P3,000,000. The project was completed during 2021. The accounting records disclosed the following:
2020
2021
Progress billings during the year
P1,100,000
P1,900,000
Cost incurred during the year
900,000
1,800,000
Collections on billings during the year
700,000
2,300,000
Estimated cost to complete
Required -
1. What is the balance of construction in progress account at the end of the 2020 under percentage of completion method?
2. What is the balance of construction in progress account at the end of the 2020 under zero profit method?
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