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Prepare Crane's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery 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 O for the amounts. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round intermediate calculations.)

Prepare Crane's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery 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 O for the amounts. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crane Construction Company began work on a $400,500 construction contract in 2025. During 2025, Crane incurred costs of $269,500, billed its customer for $230,500, and collected $179,000. At December 31, 2025, the estimated additional costs to complete the project total $150,740. Prepare Crane's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery 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 O for the amounts. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round intermediate calculations.) No. Account Titles and Explanation (a) (b) Construction Expenses Construction in Process Revenue from Long-Term Contracts Loss from Long-Term Contracts Construction in Process Debit 276841 20000 Credit 20000 256841 20000
Transcribed Image Text:Crane Construction Company began work on a $400,500 construction contract in 2025. During 2025, Crane incurred costs of $269,500, billed its customer for $230,500, and collected $179,000. At December 31, 2025, the estimated additional costs to complete the project total $150,740. Prepare Crane's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery 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 O for the amounts. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round intermediate calculations.) No. Account Titles and Explanation (a) (b) Construction Expenses Construction in Process Revenue from Long-Term Contracts Loss from Long-Term Contracts Construction in Process Debit 276841 20000 Credit 20000 256841 20000
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