Flounder Construction Company began work on a $417,400 construction contract in 2020. During 2020, Flounder incurred costs
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Flounder Construction Company began work on a $417,400 construction contract in 2020. During 2020, Flounder 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 Flounder’s journal entry to record profit or loss, if any, using
(a) the percentage-of-completion method and
(b) the completed-contract method.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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