Question 1.

Question 2.

Buffalo Construction Company began work on a $419,500 construction contract in 2020. During 2020, Buffalo incurred costs of $282,500, billed its customer for $232,500, and collected $181,000. At December 31,2020 , the estimated additional costs to complete the project total $164,140. Prepare Buffalo's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completedcontract 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.) Indigo, Inc. began work on a $6,550,000 contract in 2020 to construct an office building. During 2020 , Indigo, Inc. incurred costs of $1,817,440, billed its customers for $1,316,000, and collected $1,039,000. At December 31,2020 , the estimated additional costs to complete the project total $3,094,560. Prepare Indigo's 2020 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Buffalo Construction Company began work on a $419,500 construction contract in 2020. During 2020, Buffalo incurred costs of $282,500, billed its customer for $232,500, and collected $181,000. At December 31,2020 , the estimated additional costs to complete the project total $164,140. Prepare Buffalo's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completedcontract 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.) Indigo, Inc. began work on a $6,550,000 contract in 2020 to construct an office building. During 2020 , Indigo, Inc. incurred costs of $1,817,440, billed its customers for $1,316,000, and collected $1,039,000. At December 31,2020 , the estimated additional costs to complete the project total $3,094,560. Prepare Indigo's 2020 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)