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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
mn.9
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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