Reference no: EM132583559

NEWBEE Construction Company began operations in 2017. Construction activity for 2017 is shown below. NEWBEE uses the cost-recovery method

                                        Billings....................Collections

Through.................Through.............Costs to........Estimated cost to

Contract..........Contract Price.....12-31-2017............12-31-2017........12-31-2017...........Complete.

1 .........................P 3,200,000........P 3,150,000.........P 2,600,000....P 2,150,000 ...........0.

2.............................3,600,000............1,500,000..............1,000,000...........820,000......P 1,880,000

3............................ 3,300,000..........1,900,000...............1,800,000...........2,250,000......1,200,000

Question 1. Which of the following should be shown on the income statement for 2017 related to Contract 1?

Question 2. Which of the following should be shown on the statement of financial position at December 31, 2017 related to Contract 2?

Question 3. Which of the following should be shown on the statement of financial position at December 31, 2017 related to Contract 3?