Craft Construction
Craft Construction Entered into a Contract to Construct

Craft Construction
Craft Construction entered into a contract to construct a generator station for a utility customer. The project was started in 2019 and completed in 2020. Cost and other information is presented below.
$$\begin{array} { | l | c | c | } \hline & \underline { 2019 } & \underline { 2020 } \\\hline \text { Costs incurred during the year } & \$ 225,000 & \$ 550,000 \\\hline \text { Estimated costs to complete } & 450,000 & - 0 - \\\hline \text { Billings during the year } & 200,000 & 700,000 \\\hline \text { Cash collections during the year } & 150,000 & 750,000 \\\hline\end{array}$$
-Craft Construction entered into a contract to construct a generator station for a utility customer. The project was started in 2019 and completed in 2020. Cost and other information is presented below.
2019 2020
Costs incurred during the year $225,000 $550,000
Estimated costs to complete 450,000 -0-
Billings during the year 200,000 700,000
Cash collections during the year 150,000 750,000
Assume Craft uses the percentage-of-completion method for revenue recognition. Prepare all journal entries to record costs, billings, collections and profit recognition.