Create journal entries to record profit or loss


Response to the following problem:

Archer Construction Company began work on a $420,000 construction contract in 2014. During 2014, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2014, the estimated future costs to complete the project total $162,000.

Prepare Archer's journal entry to record profit or loss using

(a) the percentage-of-completion method and

(b) the completed-contract method, if any.

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Accounting Basics: Create journal entries to record profit or loss
Reference No:- TGS02122363

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