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On January 1, Miller Construction Company contracted to build a parking lot for the city...

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Accounting

On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,500,000. The following transactions and estimates relate to this contract. a. Construction costs incurred during the year $400,000 b. Progress billings $380,000 c. Cash collections $350,000 d. Estimated costs to complete $800,000 Required 1. The company accounts for revenue over time. Compute the percent complete at the end of the first year. Percent Complete Numerator Denominator Result At the end of Year 1 Answer 400,000 Answer 1,200,000 = 33.33 2. Prepare the journal entries to record (a) costs incurred, (b) progress billings, (c) collections, and (d) any revenue or expense recognition. Note: Use the result EXACTLY as displayed above

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