Windsor Construction Company began work on a $404,000 construction contract in 2020. During 2020, Windsor incurred costs
Question:
Windsor Construction Company began work on a $404,000 construction contract in 2020. During 2020, Windsor incurred costs of $273,000, billed its customer for $232,000, and collected $182,000. At December 31, 2020, the estimated additional costs to complete the project total $163,660.
Prepare Windsor’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
No. | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
(a) | enter an account title to record the transaction using the percentage-of-completion method | enter a debit amount | enter a credit amount |
enter an account title to record the transaction using the percentage-of-completion method | enter a debit amount | enter a credit amount | |
enter an account title to record the transaction using the percentage-of-completion method | enter a debit amount | enter a credit amount | |
(b) | enter an account title to record the transaction using the completed-contract method | enter a debit amount | enter a credit amount |
enter an account title to record the transaction using the completed-contract method | enter a debit amount | enter a credit amount |
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel