Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to complete the project total $155,835. Prepare Headland'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 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.) No. Account Titles and Explanation Debit Credit (a) (b)
Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to complete the project total $155,835. Prepare Headland'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 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.) No. Account Titles and Explanation Debit Credit (a) (b)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...
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![Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs
of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to
complete the project total $155,835.
Prepare Headland'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 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.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71166261-73e9-4688-ae8c-d667e736a71b%2F7bf7a08f-00bc-480a-8c09-61ee903d0b8d%2Fvwb3gk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs
of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to
complete the project total $155,835.
Prepare Headland'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 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.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)
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