Accounting for Contracts Over Time On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $900,000. The following transactions and estimates relate to this contract. a. | Construction costs incurred during the year | 240,000 b.| Progress billings $228,000 . | Cash collections $210,000 d.| Estimated costs to complete $480,000 Required 1. The company accounts for revenue over time. Compute the percent complete at the end of the first year. L L s L Result AttheendofYear1/$ 240,000 v + 720,000 v = 3333% 2. Prepare the journal entries to record (a) costs incurred, (b) progress billings, () collections, and (d) any revenue or expense recognition. #Note: Use the result EXACTLY as displayed above in the calculations below. eNote: If a journal entry isn't required on any of the dates shown, select "N/Adebit" and "N/Acredit" as the account names and leave the Dr. and Cr. answers blank (zero). Ref. Account Name L g a Construction in Process v 0v Cash v 240,000 v To record constructions costs incurred b Accounts Receivable ~ 228,000 0v Billings on Contracts v 0 228000 v To record progress billings C Cash v 210,000 0v Accounts Receivable v 0 210,000 v To record collections d. Deferred Revenue v 299,970 0x N/ADebit v 0 0x Revenues from Long-Term Contracts v 0 299970 v To recognize revenues and expenses