Accounting for Contracts at a Point in Time On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following tra estimates relate to this contract. a. Construction costs incurred during the year $300,000 b. Progress billings $285,000 c. Cash collections $262,500 d. Estimated costs to complete $600,000 Required Prepare the journal entries for the year to record (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) reve expenses. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and le and Cr. answers blank (zero). Ref. 1. 2 Account Name Construction in Process Cost of Construction To record constructions costs incurred Accounts Receivable Dr. 300,000 0 285,000 Cr. 0✔ 300,000 x 0✓
Accounting for Contracts at a Point in Time On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following tra estimates relate to this contract. a. Construction costs incurred during the year $300,000 b. Progress billings $285,000 c. Cash collections $262,500 d. Estimated costs to complete $600,000 Required Prepare the journal entries for the year to record (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) reve expenses. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and le and Cr. answers blank (zero). Ref. 1. 2 Account Name Construction in Process Cost of Construction To record constructions costs incurred Accounts Receivable Dr. 300,000 0 285,000 Cr. 0✔ 300,000 x 0✓
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounting for Contracts at a Point in Time
On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following tram
estimates relate to this contract.
a. Construction costs incurred during the year $300,000
b. Progress billings
$285,000
c. Cash collections
$262,500
d. Estimated costs to complete
$600,000
Required
Prepare the journal entries for the year to record (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) reve.
expenses.
Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and lea
and Cr. answers blank (zero).
Ref.
1.
2
Account Name
Construction in Process.
Cost of Construction
To record constructions costs incurred
Accounts Receivable
Dr.
300,000
0
285,000
Cr.
0
300,000 x
0✓
Transcribed Image Text:Required
Prepare the journal entries for the year to record (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) revenues
expenses.
Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave
and Cr. answers blank (zero).
Ref.
1. Construction in Process
2.
3,
Account Name
4
Cost of Construction
To record constructions costs incurred
Accounts Receivable
Billings on Contracts
To record progress billings
Cash
Accounts Receivable
To record collections
Deferred Revenue
Sales Revenue
To recognize revenues and expenses
Dr.
300,000
0
285,000
0
262,500
0
300,000
0
Cr.
0
300,000 x
0✔
285,000✔
0✔
262,500✔
0x
300,000 x
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