Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020, Splish incurred costs of $ 267,500, billed its customer for $ 201,500, and collected $ 176,000. At December 31, 2020, the estimated additional costs to complete the project total $ 157,575. Prepare Splish’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.

Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020, Splish incurred costs of $ 267,500, billed its customer for $ 201,500, and collected $ 176,000. At December 31, 2020, the estimated additional costs to complete the project total $ 157,575. Prepare Splish’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.

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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please provide working i post this que 2nd time
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