Recording Long Term Construction Recognize Revenue at a Point in Time and Over Time Watson Construction Company contracted to build a plant for $500,000 Construction started in January 2020 and was completed in November 2021 Watson uses the cost to cost method to measure the completion of its performance obligations Data relating to the contract follow Provide the 2020 and 2021 journal entries for Watson assuming revenue is recognized over time Provide entries for (1) construction costs incurred, (2) progress billings, (3) cash collections, (4) revenues and expenses, and (5) to close out accounts upon completion of the contract Note If a journal entry isn't required for the transaction, select N A as the account names and leave the Dr and Cr answers blank (zero) Note List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name Note Round amounts to the nearest whole dollar 2020 2021 Costs incurred during year Estimated additional costs to complete Billings during year Cash collections during year $290,000 $120,000 125,000 270,000 230,000 250,000 250,000 Date Account Name Dr Cr 2020 (1) Cash, Payables, etc 2020 (2) 2020 (3) 2020 (4) 2021 (1) Cash, Payables, etc 2021 (2) 2021 (3) 2021 (4) 2021 (5) 2020 2021 Costs incurred during year Estimated additional costs to complete Billings during year Cash collections during year $290,000 $120,000 125,000 270,000 230,000 250,000 250,000 Date Account Name Dr Cr 2020 (1) Cash, Payables, etc 2020 (2) 2020 (3) 2020 (4) 2021 (1) Cash, Payables, etc 2021 (2) 2021 (3) 2021 (4) 2021

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Question: Recording Long-Term Construction: Recognize Revenue at a Point in Time and Over Time Watson Construction Company contracted to build a plant for $500,000. Construction started

Recording Long-Term Construction: Recognize Revenue at a Point in Time and Over Time

Watson Construction Company contracted to build a plant for $500,000. Construction started in January 2020 and was completed in November 2021. Watson uses the cost-to-cost method to measure the completion of its performance obligations. Data relating to the contract follow.

Recording Long-Term Construction: Recognize Revenue at a Point in Time and Over

Provide the 2020 and 2021 journal entries for Watson assuming revenue is recognized over time. Provide entries for (1) construction costs incurred, (2) progress billings, (3) cash collections, (4) revenues and expenses, and (5) to close out accounts upon completion of the contract.

Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).
Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name.
Note: Round amounts to the nearest whole dollar

Time Watson Construction Company contracted to build a plant for $500,000. Construction

2020 2021 Costs incurred during year Estimated additional costs to complete Billings during year Cash collections during year $290,000 $120,000 125,000 270,000 230,000 250,000 250,000 Date Account Name Dr. Cr. 2020 (1) Cash, Payables, etc. 2020 (2) 2020 (3) 2020 (4) 2021 (1) Cash, Payables, etc. 2021 (2) 2021 (3) 2021 (4) 2021 (5) 2020 2021 Costs incurred during year Estimated additional costs to complete Billings during year Cash collections during year $290,000 $120,000 125,000 270,000 230,000 250,000 250,000 Date Account Name Dr. Cr. 2020 (1) Cash, Payables, etc. 2020 (2) 2020 (3) 2020 (4) 2021 (1) Cash, Payables, etc. 2021 (2) 2021 (3) 2021 (4) 2021

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