By December 31, one month of the insurance coverage and cost have been used up or expired. Hence the income statement for December should report just one month of insurance cost of $400 ($2,400 divided by 6 months) in the account Insurance Expense. The balance sheet dated December 31 should…

This section will illustrate the journal entries required over the duration of a construction project using percentage-of-completion. In this post, we’ll define the percentage-of-completion method, walk through the formula, look at key journal entries, and discuss the major advantages and limitations of this approach. Completion percentage can be used to…