On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $525,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $280,000 $133,000 Progress billings Cash collections $122,500 $280,000 Estimated costs to complete a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order a. Account To recognize revenues and expenses b. ♦ b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Account Debit Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" a the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Credit Debit Credit
On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $525,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $280,000 $133,000 Progress billings Cash collections $122,500 $280,000 Estimated costs to complete a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order a. Account To recognize revenues and expenses b. ♦ b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Account Debit Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" a the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Credit Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 24E
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