Situation 1: In July 2xx1, Green Company signed a contract to construct a building for a fixed price of $675,000 for occupancy in October 2xx3. At the time of contracting, it was expected that the building would cost $600,000 (for an estimated profit of $75,000). The following information shows the actual date for the three years of construction:

	2XX1	2XX2	2XX3
Costs incurred to date:	$150,000	$437,400	$607,500
Estimated remaining costs to complete:	$450,000	$170,100	$0
Progress billings during the year:	$135,000	$360,000	$180,000
Progress payments collected	$112,500	$262,500	$300,000

Requirements:

a) Prepare all appropriate journal entries for 2xx1, 2xx2, and 2xx3 to recognize revenue over time.

b) Prepare all appropriate journal entries for 2xx1, 2xx2 and 2xx3 to recognize revenue at a point in time.

Situation 2: Suppose at the end of 2xx2 the estimated remaining (and eventual actual) costs to complete the building are $215,436 instead of $170,100 as indicated in Situation 1.

Requirements: Prepare the appropriate 2xx2 and 2xx3 journal entries to reflect a periodic loss.

Situation 3: Suppose at the end of 2xx2 the estimated remaining (and eventual actual) costs to complete the building are $246,038 instead of $170,100 as indicated in Situation 1.

Requirements: Prepare the appropriate 2xx2 and 2xx3 journal entries to reflect a projected unprofitable contract.