1- Bridgeport Construction Company began work on a $407,000 construction contract in 2020. During 2020, Bridgeport incurred costs of $272,000, billed its customer for $217,000, and collected $177,500. At December 31, 2020, the estimated additional costs to complete the project total $157,020.

Prepare Bridgeports journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.

2- Waterway, Inc. began work on a $7,071,000 contract in 2020 to construct an office building. Waterway uses the completed-contract method. At December 31, 2020, the balances in certain accounts were Construction in Process $1,877,000, Accounts Receivable $237,000, and Billings on Construction in Process $958,000. Indicate how these accounts would be reported in Waterways December 31, 2020, balance sheet