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:

___________________________________________ 2019 ______________2020__

Costs incurred during the year.................$290,000................$150,000

Estimated additional cost to complete.....145,000........................     -

Billings during the year................................260,000..................265,000

Cash collections during the year................240,000..................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.