MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and...

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MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows: Costs incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year Required: 20X1 $290,000 20X2 $150,000 145,000 260,000 240,000 265,000 285,000 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. MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows: Costs incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year Required: 20X1 $290,000 20X2 $150,000 145,000 260,000 240,000 265,000 285,000 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.