BA 118.

1 Q25 Long-term Construction Contracts_adeveyra

Ashton Lego Builders Corporation entered into a 3-year construction contract in 2013 at a contract price of ₱300,000. The
following data were gathered:
2013 2014 2015
Costs incurred this year ₱ 50,000 ₱ 100,000 ₱ 75,000
Estimated cost to complete ₱150,000 ₱ 75,000 0
Cumulative contract billings ₱ 75,000 ₱ 200,000 ₱ 300,000
Annual collection on billings ₱ 75,000 ₱ 150,000 ₱ 50,000
The project was completed as scheduled on December 30, 2015. Use percentage of completion.

1. Prepare the entry to take up cost incurred in 2013, 2014 & 2015, respectively.
2. Prepare the entries to take up contract billings and collection for 2013, 2014 & 2015, respectively.
3. Prepare the entry to take up realized profit as of December 31, 2013, 2014 & 2015, respectively
4. Assume the same data set above except cost incurred in 2015 is ₱150,000, prepare the entry to take up realized
profit in 2015.
5. Assume the same data set above except cost incurred in 2015 is ₱175,000, prepare the entry to take up realized
profit in 2015.
For #6 to #9: Using the original data set above but assuming cost to complete as of end of 2014 is ₱250,000
6. Prepare the entry to take up realized profit as of December 31, 2014 & 2015, respectively, assuming cost incurred
in 2015 is ₱250,000.
7. Prepare the entry to take up realized profit as of December 31, 2015 assuming cost incurred in 2015 is ₱200,000.
8. Prepare the entry to take up realized profit as of December 31, 2015 assuming cost incurred to date as at end of
2015 is ₱275,000.
9. Prepare the entry to take up realized profit as of December 31, 2014 assuming cost incurred in 2015 is ₱75,000.

BA 118.1 Q25 Long-term Construction Contracts_adeveyra

Ashton Lego Builders Corporation entered into a 3-year construction contract in 2013 at a contract price of ₱300,000. The
following data were gathered:
2013 2014 2015
Costs incurred this year ₱ 50,000 ₱ 100,000 ₱ 75,000
Estimated cost to complete ₱150,000 ₱ 75,000 0
Cumulative contract billings ₱ 75,000 ₱ 200,000 ₱ 300,000
Annual collection on billings ₱ 75,000 ₱ 150,000 ₱ 50,000
The project was completed as scheduled on December 30, 2015. Use percentage of completion.

1. Prepare the entry to take up cost incurred in 2013, 2014 & 2015, respectively.
2. Prepare the entries to take up contract billings and collection for 2013, 2014 & 2015, respectively.
3. Prepare the entry to take up realized profit as of December 31, 2013, 2014 & 2015, respectively
4. Assume the same data set above except cost incurred in 2015 is ₱150,000, prepare the entry to take up realized
profit in 2015.
5. Assume the same data set above except cost incurred in 2015 is ₱175,000, prepare the entry to take up realized
profit in 2015.
For #6 to #9: Using the original data set above but assuming cost to complete as of end of 2014 is ₱250,000
6. Prepare the entry to take up realized profit as of December 31, 2014 & 2015, respectively, assuming cost incurred
in 2015 is ₱250,000.
7. Prepare the entry to take up realized profit as of December 31, 2015 assuming cost incurred in 2015 is ₱200,000.
8. Prepare the entry to take up realized profit as of December 31, 2015 assuming cost incurred to date as at end of
2015 is ₱275,000.
9. Prepare the entry to take up realized profit as of December 31, 2014 assuming cost incurred in 2015 is ₱75,000.