On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,500,000. Prepare the 2020 journal entries for the following transactions and estimates relating to the contract assuming that revenue is recognized over time. a. Construction costs incurred during 2020 5400,000 b. Progress billings c. Cash collections d. Estimated costs to complete $380,000 $350,000 $800,000 Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order.
On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,500,000. Prepare the 2020 journal entries for the following transactions and estimates relating to the contract assuming that revenue is recognized over time. a. Construction costs incurred during 2020 5400,000 b. Progress billings c. Cash collections d. Estimated costs to complete $380,000 $350,000 $800,000 Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,500,000. Prepare the 2020 journal entries for the following transactions and estimates relating to the
contract assuming that revenue is recognized over time.
a. Construction costs incurred during 2020 $400,000
b. Progress billings
$380,000
Cash collections
$350,000
C.
d. Estimated costs to complete
$800,000
Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order.
Account
Debit
Credit
a.
To record constructions costs incurred
b.
To record progress billings
C.
To record collections
d.
To recognize revenues and expenses
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