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On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,275,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $680,000 Progress billings $323,000 Cash collections $297,500 Estimated costs to complete $680,000 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 Loss from Long-Term Contracts Cost of Construction Dr. 42,500 680,000 Cr. 0x 0x

On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,275,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $680,000 Progress billings $323,000 Cash collections $297,500 Estimated costs to complete $680,000 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 Loss from Long-Term Contracts Cost of Construction Dr. 42,500 680,000 Cr. 0x 0x

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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On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,275,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $680,000 $323,000 $297,500 $680,000 Progress billings 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 Loss from Long-Term Contracts Cost of Construction Dr. 42,500 680,000 Cr. 0x 0x
Transcribed Image Text:On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,275,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $680,000 $323,000 $297,500 $680,000 Progress billings 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 Loss from Long-Term Contracts Cost of Construction Dr. 42,500 680,000 Cr. 0x 0x
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