Question

Monty Construction Company began work on a $ 423,500 construction contract in 2017. During 2017, Monty incurred costs of $ 277,000, billed its customer for $ 216,300, and collected $ 175,500. At December 31, 2017, the estimated additional costs to complete the project total $ 160,400. Prepare Monty’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method

Answer 1