Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020, Splish incurred costs of $ 267,500, billed its customer for $ 201,500, and collected $ 176,000. At December 31, 2020, the estimated additional costs to complete the project total $ 157,575. Prepare Splish’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020, Splish incurred costs of $ 267,500, billed its customer for $ 201,500, and collected $ 176,000. At December 31, 2020, the estimated additional costs to complete the project total $ 157,575. Prepare Splish’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 24E
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Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020, Splish incurred costs of $ 267,500, billed its customer for $ 201,500, and collected $ 176,000. At December 31, 2020, the estimated additional costs to complete the project total $ 157,575.
Prepare Splish’s
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