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MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20x2. Information relating to the contract

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MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20x2. Information relating to the contract follows: 2ex2 $150,000 Costs incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year 2ex1 $290,000 145,000 260,000 240,000 265, eee 285, eee Required: 1. Record the preceding transactions in MSK's books assuming it recognizes revenue over time and uses costs incurred to measure the extent to which its performance obligation has been satisfied 2. Record the preceding transactions in MSK's 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. Saved View transaction list Journal entry worksheet Prepare the entry to record the construction costs incurred. Hint: Use Cash, payables, materials, etc. Note: Enter debits before credits Date General Journal Debit Credit 20X1 View transaction list Journal entry worksheet Prepare the entry to record the cash receipts from the customer. Note: Enter debits before credits Date General Journal Debit Credit 20X1 Journal entry worksheet Prepare the entry to record the construction costs incurred. Hint: Use Cash, payables, materials, etc. Note: Enter debits before credits. Date General Journal 20X2 Debit Credit Journal entry worksheet Prepare the entry to record the cash receipts from the customer. Note: Enter debits before credits. Date 20X2 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 Prepare the entry to record the construction costs incurred. Hint: Use Cash, payables, materials, etc. Note: Enter debits before credits. Date General Journal Debit Credit 20X1 Record entry Clear entry View general Journal Journal entry worksheet Prepare the entry to record the cash receipts from the customer. 3:51 Note: Enter debits before credits. Date General Journal Debit Credit 20X1 Record entry Clear entry View general Journal Journal EILIY VUISICEL Prepare the entry to record the construction costs incurred. Hint: Use Cash, payables, materials, etc. Note: Enter debits before credits. General Journal Debit Date 20X2 Credit Record entry Clear entry View general Journal Prepare the entry to record the amounts billed to the customer. Note: Enter debits before credits Date General Journal Debit Credit 20X2 Prepare the entry to record revenue, expense, and completion of the project. Note: Enter debits before credits. General Journal Debit Credit Date 20x2

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