On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $675,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $360,000 Progress billings $171,000 Cash collections Estimated costs to complete Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. 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 the Dr. and Cr. answers blank (zero). Account Name Cost of Construction Construction in Process Revenues from Long-Term Contracts To recognize revenues and expenses Account Name $157,500 $360,000 Billings on Contracts Construction in Process Dr. 720,000 0 0 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. •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 the Dr. and Cr. answers blank (zero). Cr. Dr. 675,000 0 0x 360,000 x 337,500 ✓ Cr. 0x 675,000 x

On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $675,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $360,000 Progress billings $171,000 Cash collections Estimated costs to complete Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. 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 the Dr. and Cr. answers blank (zero). Account Name Cost of Construction Construction in Process Revenues from Long-Term Contracts To recognize revenues and expenses Account Name $157,500 $360,000 Billings on Contracts Construction in Process Dr. 720,000 0 0 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. •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 the Dr. and Cr. answers blank (zero). Cr. Dr. 675,000 0 0x 360,000 x 337,500 ✓ Cr. 0x 675,000 x

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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