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Bonita Construction Company began work on a $400,000 construction contract in 2020. During 2020, Bonita incurred costs of $257 500, billed its customer for $209,500,
Bonita Construction Company began work on a $400,000 construction contract in 2020. During 2020, Bonita incurred costs of $257 500, billed its customer for $209,500, and collected $185,000. At December 31, 2020, the estimated additional costs to complete the project total $155,955. Prepare Bonita'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 for the amounts Round answers to decimal places, eg. 5,275.) No. Account Titles and Explanation Debit Credit (a) Construction Expenses Construction in Process Service Revenue (b) Loss from Long-Term Contracts Construction in Process
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