On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $675,000. The following transactions and estimates relate to this contract.

Construction costs incurred during 2020	$360,000
Progress billings	$171,000
Cash collections	$157,500
Estimated costs to complete	$360,000

a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order.

	Account	Debit	Credit
a.	AnswerCashAccounts ReceivableConstruction in ProcessBillings on ContractsLoss from Long Term ContractsRevenue from Long Term ContractsCost of ConstructionN/A	Answer	Answer
	AnswerCashAccounts ReceivableConstruction in ProcessBillings on ContractsLoss from Long Term ContractsRevenue from Long Term ContractsCost of ConstructionN/A	Answer	Answer
	AnswerCashAccounts ReceivableConstruction in ProcessBillings on ContractsLoss from Long Term ContractsRevenue from Long Term ContractsCost of ConstructionN/A	Answer	Answer
	To recognize revenues and expenses

b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

	Account	Debit	Credit
b.	AnswerCashAccounts ReceivableConstruction in ProcessBillings on ContractsLoss from Long Term ContractsRevenue from Long Term ContractsCost of ConstructionN/A	Answer	Answer
	AnswerCashAccounts ReceivableConstruction in ProcessBillings on ContractsLoss from Long Term ContractsRevenue from Long Term ContractsCost of ConstructionN/A	Answer	Answer
	To recognize revenues and expenses