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

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.

2014 Costs incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year $290,000 145,000 260,000 240,000 2015 S150,000 265,000 285,000

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Completed Contract Method Year 2014 DR Construction in progress CR Cash payables materials etc 290000 290000 DR Accounts receivable CR Billings on con... View full answer

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