Case Study 2: What are the proper entries for the following transactions listed in the following three questions?

American Construction Company, Inc. started operations on January 2, 2010. American was awarded the contract for Project 101 during January. The bid price was $200,000. The estimated project cost was $180,000. Review the demonstration problem within the text for a complete explanation for entering Januarys transactions into the general journal, posting to account ledgers, closing out and finding ending balances for accounts as appropriate, and preparing Januarys income statement, and balance sheet.

During February, the second month of operations, American completed Project 101 and began Project 102. The contract amount for Project 102 was $500,000. The estimated project cost was $400,000. The following transactions occurred during February:

Question 1: Subcontractor billings: Project 101 - $45,000; Project 102 - $50,000. (10% retention)