HuskiesBest Construction Company began work on a $420,000 construction contract in 2020. During 2020, HuskiesBest incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2020, the estimated additional costs to complete the project total $162,000. Prepare HuskiesBest 's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
HuskiesBest Construction Company began work on a $420,000 construction contract in 2020. During 2020, HuskiesBest incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2020, the estimated additional costs to complete the project total $162,000. Prepare HuskiesBest 's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![HuskiesBest Construction Company began work on a $420,000 construction contract in 2020. During 2020, HuskiesBest incurred costs of $278,000, billed its customer for $215,000, and collected $175,000.
At December 31, 2020, the estimated additional costs to complete the project total $162,000.
Prepare HuskiesBest 's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F848d2815-618a-44e4-8601-215ffcbc9c00%2F5faf65bb-99db-41ba-a132-413f2969d8e9%2Fw5fbcrw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:HuskiesBest Construction Company began work on a $420,000 construction contract in 2020. During 2020, HuskiesBest incurred costs of $278,000, billed its customer for $215,000, and collected $175,000.
At December 31, 2020, the estimated additional costs to complete the project total $162,000.
Prepare HuskiesBest 's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
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