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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✓

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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✓
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
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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