Thrasher Construction Co$.$ was contracted to construct a building for $$925,000.$ The building is owned by the customer throughout the contract period. The contract provides for progress payments. Thrasher$$s accounting year ends $31$ December. Work began under the contract on $1$ July $20$X$5,$ and was completed on $30$ September $20$X$7.$ Construction activities are summarized below by year:

$20$X$5$ Construction costs incurred during the year, $$170,500$; estimated costs to complete, $$596,700$; progress billings during the year, $$144,800$; and collections, $$132,600.$

$20$X$6$ Construction costs incurred during the year, $$426,200$; estimated costs to complete, $$180,000$; progress billing during the year, $$362,200$; and collections, $$360,000.$

$20$X$7$ Construction costs incurred during the year, $$185,000.$ Because the contract was completed, the remaining balance was billed and later collected in full per the contract.

Requilred:

Prepare Thrasher's journal entries to record these events. Assume that percentage of completion is measured by the ratio of costs

incurred to date divided by total estimated construction costs. $($If no entry is requlred for a transactlon$/$event$,$ select $"$No journal

entry required" In the first account fleld. Do not round Intermedlate calculatlons. Round your final answers View transaction list

$1$ Record the construction costs incurred.

$2$ Record the progress billings.

$3$ Record the collection of billings.

$4$ Record the recognition of income.

$5$ Record entry to recognize costs related to revenue

recognized to date.

Note : $=$ journal entry has been entered Provide the balances that would be shown on the SCI and SFP for this contract for each year. $($Do not round Intermedlate

calculations. Round your final answers to the nearest whole dollar.$)$

$3-$a$.$ Now assume that the building is owned by Thrasher throughout the construction period and title is transferred to the customer

only once the bullding is fully constructed. Prepare the journal entries required to record the events from $205$ to $207.($If no entry is

requlred for a transactlon$/$event$,$ select $"$No Journal entry requlred" In the first account fleld.$)$

Journal entry worksheet

Record the construction costs incurred.

Note: Enter debits before credits$\mathrm{.}1$ Record the construction costs incurred.

$2$ Record the progress billings.

$3$ Record the collection of billings.

Note : $0$ journal entry has been entered

Journal entry worksheet

$1$

$3$

$4$

$5$

Record the construction costs incurred.

Note: Enter debits before credits$\mathrm{.}3-$b$.$ Calculate the balances that would be shown on the SCI and SFP for this contract for each year.