rofit or loss contract m
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Culver Construction Company began work on a $402, 000 construction contract in 2020.
During 2020, Culver incurred costs of $252,000, billed its customer for $210, 500, and
collected $177,000. At December 31, 2020, the estimated additional costs to complete the
project total $162, 405. Prepare Culver'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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