Bandi Construction Company contracted to construct a factory building for $525,000. Construction started during 2019 and was completed in 2020. Information relating to the contract follows: 2019 2020 Costs incurred during the year $290,000 $150,000 Estimated additional cost to complete 145,000 Billings during the year 260,000 265,000 Cash collections during the year 240,000 285,000 Required:

1 Record the preceding transactions in Bandis books assuming it recognizes revenue over time and uses costs incurred to measure the extent to which its performance obligation been satisfied. Please show calculation or you will receive ZERO points for the answer.

2-Record the preceding transactions in Bandis books assuming it recognizes revenue at a point in time when control of the completed factory is transferred to the customer at the end of the project. Please show calculation or you will receive ZERO points for the answer.