Problem
Kingbird Construction Company began work on a $421,100 construction contract in 2017. During 2017, Kingbird incurred costs of $277,400, billed its customer for $214,300, and collected $175,000. At December 31, 2017, the estimated additional costs to complete the project total $163,200.
Prepare Kingbird's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.