Magnum Construction Contracted to Construct a Factory Building for $545,000

Essay

Magnum Construction contracted to construct a factory building for $545,000.The company started during 2012 and was completed in 2013.Information relating to the contract is as follows:
$$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 2 } & \mathbf { 2 0 1 3 } \\\hline \text { Costs incurred during the year } & \mathbf { 1 3 1 0 , 0 0 0 } & \mathbf { 1 1 7 0 , 0 0 0 } \\\hline \text { Estimated additional cost to complete } & 165,000 & \ldots \\\hline \text { Billings during the year } & 280,000 & 285,000 \\\hline \text { Cash collections thring the year } & 260,000 & 305,000 \\\hline\end{array}$$
Required:
Record the preceding transactions in Magnum's books under completed-contract and the percentage of completion methods.Determine amounts that will be reported on the balance sheet at the end of 2012.