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MSK Construction Company contracted to construct a factory building for $ 5 2 5 , 0 0 0 . Construction started during 2 0 X
MSK Construction Company contracted to construct a factory building for $ Construction started during X and was completed in X Information relating to the contract follows:
XX
Costs incurred during the year $ $
Estimated additional cost to complete
Billings during the year
Cash collections during the year
Required:
Record the preceding transactions in MSKs books assuming it recognizes revenue over time and uses costs incurred to measure the extent to which its performance obligation has been satisfied.
Record the preceding transactions in MSKs 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.
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