3. CCC Company began operations on January 1, 2019. During the year, Andrei entered into...
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3. CCC Company began operations on January 1, 2019. During the year, Andrei entered into a contract with DDD Company to construct a manufacturing facility. At that time, CCC estimated that it would take 3 years to complete the facility at a total cost of P4,500,000. The total contract price is P6,300,000. In 2019, CCC incurred P1,185,800 in construction costs and estimated that P4,204,200 more will be needed for its completion. DDD Company was billed and paid 30% of the contract price. The following year, CCC incurred P3,299,200 and the engineer's estimate of cost to complete is P2,500,000. It is expected that the project will be completed this year. Determine the following: a. Percentage of completion each year b. Amount of contract revenue, contract costs and profit to appear in the income statement of each year C. Entries required to record the transactions each year
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