Problem 102 & 104

struction project? Identify some specihc Why is the ending inventory of constru in process differ nized at a point in time? Explain by how dlT 7-99. nized over time as compared to revenue amounts will differ. recogn on a long-term construction contract, in what period(s) is the loss recognized Appendices-Brief Exercises how the following item is reported in the financial statements of a company: The balance of $250,000 in When a loss is projected (a) when revenue is recognized over time, and (b) when revenue is recognized at a point in time? 7-100. Indicate how the following i a billings account, which is less than $300,000 in a construction in process account. 7-101 Reporting Contracts in a Balance Sheet LO10 On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for App-Brief Exercie $750,000. Prepare the 2020 journal entries for the following transactions and estimates relating to the contract 7-102 assuming that revenue is recognized over time. a. ,000 c. Cash collections Accounting for Contracts Over Time LO10 Construction costs incurred during 2020...$200 . $175,000 Estimated costs to complete.... $400,000 $190,000 d. Refer to the facts in Appendix Brief Exercise 7-10 suming revenue is recognized at a point in time. Prepare the 2020 journal entries. 2 except that Miller Construction accounts for the contract as- App-Brief Exercise 7-103 Contracts at a Point in for Time LO10 Refer to the facts in Appendix Brief Exercise 7-102 except that 2020 construction costs incurred during the year were $400,000 instead of $200,000. Prepare the 2020 journal entries to record profit or loss assuming () reven is recognized over time, and (2) revenue is recognized at a point in time. App- Brief Exercise 7-104 for an Unprofitable Contract LO11