MSK Construction Company contracted to construct a factory building for $525,000.
Construction started during 2008 and was completed in 2009. Information relating to the contract follows:

Required:
Record the preceding transactions in MSK’s books under the completed-contract and the percentage-of-completion methods. Determine amounts that will be reported on the balance sheet at the end of 2008.

Transcribed Image Text:

2008 2009 Costs incurred during the year $290,000 $150,000 Estimated additional cost to complete 145,000 Billings during the year 260,000 265,000 Cash collections during the year 240,000 285,000