On January $1,$ Miller Construction Company contracted to build a parking lot for the city of St$.$ Louis for $$900,000.$ The following transactions and estimates relate to this contract.

Construction costs incurred during $2020$ $$480,000$

Progress billings $$228,000$

Cash collections $$210,000$

Estimated costs to complete $$480,000$

Required

a$.$ Prepare the journal entry to record profit or loss assuming revenue is recognized over time.

$$Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

Account Name Dr$.$ Cr$.$

Answer

Answer

Answer

To recognize revenues and expenses

b$.$ Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time.

$$Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$