Sandhill Construction Company began work on a $402,000 construction contract in 2020. During 2020, Sandhill incurred costs of $252,000, billed its customer for $210,500, and collected $177,000. On December 31, 2020, the estimated additional costs to complete the project total $162,405. Prepare Sandhill's journal entry to record profit or loss, if any, using (a) the percentage- of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sandhill Construction Company began
work on a $402,000 construction
contract in 2020. During 2020, Sandhill
incurred costs of $252,000, billed its
customer for $210,500, and collected
$177,000. On December 31, 2020, the
estimated additional costs to complete
the project total $162,405. Prepare
Sandhill's journal entry to record profit
or loss, if any, using (a) the percentage-
of-completion method and (b) the
completed-contract method. (Credit
account titles are automatically
indented when the amount is entered.
Do not indent manually. If no entry is
required, select "No entry" for the
account titles and enter 0 for the
amounts. Round answers to 0 decimal
places, e.g. 5,275.)
Transcribed Image Text:Sandhill Construction Company began work on a $402,000 construction contract in 2020. During 2020, Sandhill incurred costs of $252,000, billed its customer for $210,500, and collected $177,000. On December 31, 2020, the estimated additional costs to complete the project total $162,405. Prepare Sandhill's journal entry to record profit or loss, if any, using (a) the percentage- of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
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