Question Recording Long-term Construction: Recognize Revenue at a Point in Time Mullen Construction contracted to build a municipal warehouse for the city of Dallas for sil25,000. The contract spectifed that the city would pay Mullen each month the progess bllings, less \( 10 \% \), which was to be held as a retention reserve; At the end of the construction, the Recording Long-term Construction: Recognize Revenue at a Point in Time Mullen Construction contracted to build a municipal warehouse for the city of Dallas for sil25,000. The contract spectifed that the city would pay Mullen each month the progess bllings, less \( 10 \% \), which was to be held as a retention reserve; At the end of the construction, the final payment would include the reserve Each billing less the ton reserve munt be paid within 10 days after submission of a billing to the city. Transactions relating to the contract follow. 2020 - Convtruction costs incurred during the year, 1220,000 , estimated costs to complete, \( \$ 440,000 \), progress bating 1209,000 , and collections per the contrat, 2021 - Constructon costs incurred during the year, 5385,000 , estimated costs to complete, 5126,500 , progets billing, 53 , from the contract is appropriately recognized over time. 2022 - Constructisn costs incurred during the year, \( 5110.000 \). The remaining billings were suluritted ty Ocicber 1 , and final collections were completed on Noventer 30 . Requitred contrect is appropetately recognized at a point in time. Note: Do not round until your final answersy round your final answers to the nearest whole dollar. 2020 2021 b. Complete the following table.

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Transcribed Image Text: Recording Long-term Construction: Recognize Revenue at a Point in Time Mullen Construction contracted to build a municipal warehouse for the city of Dallas for sil25,000. The contract spectifed that the city would pay Mullen each month the progess bllings, less \( 10 \% \), which was to be held as a retention reserve; At the end of the construction, the final payment would include the reserve Each billing less the ton reserve munt be paid within 10 days after submission of a billing to the city. Transactions relating to the contract follow. 2020 - Convtruction costs incurred during the year, 1220,000 , estimated costs to complete, \( \$ 440,000 \), progress bating 1209,000 , and collections per the contrat, 2021 - Constructon costs incurred during the year, 5385,000 , estimated costs to complete, 5126,500 , progets billing, 53 , from the contract is appropriately recognized over time. 2022 - Constructisn costs incurred during the year, \( 5110.000 \). The remaining billings were suluritted ty Ocicber 1 , and final collections were completed on Noventer 30 . Requitred contrect is appropetately recognized at a point in time. Note: Do not round until your final answersy round your final answers to the nearest whole dollar. 2020 2021 b. Complete the following table.
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Transcribed Image Text: Recording Long-term Construction: Recognize Revenue at a Point in Time Mullen Construction contracted to build a municipal warehouse for the city of Dallas for sil25,000. The contract spectifed that the city would pay Mullen each month the progess bllings, less \( 10 \% \), which was to be held as a retention reserve; At the end of the construction, the final payment would include the reserve Each billing less the ton reserve munt be paid within 10 days after submission of a billing to the city. Transactions relating to the contract follow. 2020 - Convtruction costs incurred during the year, 1220,000 , estimated costs to complete, \( \$ 440,000 \), progress bating 1209,000 , and collections per the contrat, 2021 - Constructon costs incurred during the year, 5385,000 , estimated costs to complete, 5126,500 , progets billing, 53 , from the contract is appropriately recognized over time. 2022 - Constructisn costs incurred during the year, \( 5110.000 \). The remaining billings were suluritted ty Ocicber 1 , and final collections were completed on Noventer 30 . Requitred contrect is appropetately recognized at a point in time. Note: Do not round until your final answersy round your final answers to the nearest whole dollar. 2020 2021 b. Complete the following table.
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【General guidance】The answer provided below has been developed in a clear step by step manner.Step1/3Journal entries for the year 2020.DateAccountDrCrConstruction in Process$220,000Cash and Payables etc.$220,000To record constructions costs incurredDateAccountDrCrAccounts Receivable$209,000Billings on contracts$209,000To record progress billingsDateAccountDrCrCash$188,100Accounts Receivable$188,100To record collectionsDateAccountDrCrN/A$0N/A$0To recognize revenuesDateAccountDrCrN/A$0N/A$0To recognise expensesExplanation:Number 3 entry for cash= $209,000-10%(reserve)= $188,100Step2/3Journal entries for the year 2021.DateAccountDrCrConstruction in Process$385,000Cash and Payables etc.$385,000To record constructions costs incurredDateAccountDrCrAccounts Receivable$308,000Billings on contracts$308,000To record progress billing ... See the full answer