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plz check if my answers are right or wrong Problem 3-3 Revenue recognition over time and at a point in time under ASC Topic 606
plz check if my answers are right or wrong
Problem 3-3 Revenue recognition over time and at a point in time under ASC Topic 606 (LO3-4) MSK Construction Company contracted to construct a factory building for $525.000. Construction started during 2019 and was completed in 2020. Information relating to the contract follows: 2020 $150,000 Coats incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year 2019 $290,000 145,000 260,000 240.000 265,000 285.000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list No View journal entry worksheet General Journal Construction in progress Cash, payables, materials, etc. Date 2019 Credit Debit 290,000 29,000 2019 260,000 Accounts receivable Billings on contract 260,000 2019 Cash 240,000 Accounts receivable 240,000 2019 Construction expense Construction in progress Construction revenue 290,000 60,000 350,000 5 2020 150,000 Construction in progress Cash, payables, materials, etc. 150.000 2020 265,000 Accounts receivable Billings on contract 265,000 7 2 020 285,000 Cash Accounts receivable 285,000 8 2020 Construction expense Construction in progress Construction revenue 150.000 25,000 175,000 9 2020 525,000 Billings on contract Construction in progress 525,000 Complete this question by entering your answers in the tabs below. Required 1 Required 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Credit Date 2019 General Journal Construction in progress Cash, payables, materials, etc. Debit 290,000 290,000 2 2019 260,000 Accounts receivable Billings on contract 260,000 3 2019 240,000 Cash Accounts receivable 240,000 - 4 2 019 150,000 Construction in progress Cash, payables, materials, etc. 150,000 5 2020 L 265,000 Accounts receivable Billings on contract 265,000 285,000 I Cash Accounts receivable 285,000 7 2020 440,000 525,000 L Construction expense Billings on contract Construction in progress Construction revenue 440,000 525.000 8 2020 525,000 Construction revenue Construction expense -440,000Step by Step Solution
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