MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 2014 and was

Question:

MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 2014 and was completed in 2015. Information relating to the contract follows:

Required:
Record the preceding transactions in MSK€™s books under the completed-contract and the percentage-of-completion methods. Determine amounts that will be reported on the balance sheet at the end of2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...