Q3 Archer Construction Company began work on a $420,000 construction contract in 2015. During 2015, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2015, the estimated future costs to complete the project total $162,000. Prepare Archer's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery method.
Q3 Archer Construction Company began work on a $420,000 construction contract in 2015. During 2015, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2015, the estimated future costs to complete the project total $162,000. Prepare Archer's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery method.
Chapter1: Financial Statements And Business Decisions
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![Q3
Archer Construction Company began work on a $420,000 construction contract in 2015. During
2015, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At
December 31, 2015, the estimated future costs to complete the project total $162,000. Prepare Archer's
journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the
cost-recovery method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b375fd7-d176-44ec-ae6a-db7cb198f25f%2F09bc03a4-541a-4064-8f07-2188294ae5c9%2Fdpo9gys_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q3
Archer Construction Company began work on a $420,000 construction contract in 2015. During
2015, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At
December 31, 2015, the estimated future costs to complete the project total $162,000. Prepare Archer's
journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the
cost-recovery method.
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