On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $600,000 Progress billings $285,000 Cash collections $262,500 Estimated costs to complete $600,000 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 Cost of Construction Revenues from Long-Term Contracts Construction in Process To recognize revenues and expenses N/A-Debit Account Name Dr. 600,000 N/A Credit To recognize revenues and expenses 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). 0 0 Dr. Cr. 0 0 0 x 562,500 ✓ 37,500 * Cr. 0 x 0 x

On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $600,000 Progress billings $285,000 Cash collections $262,500 Estimated costs to complete $600,000 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 Cost of Construction Revenues from Long-Term Contracts Construction in Process To recognize revenues and expenses N/A-Debit Account Name Dr. 600,000 N/A Credit To recognize revenues and expenses 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). 0 0 Dr. Cr. 0 0 0 x 562,500 ✓ 37,500 * Cr. 0 x 0 x

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...

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