Repeat the requirements of P8- 6 assuming Bigelow Contractors uses the ­completed- contract method to report its long- term contracts. Additionally, compare the reported gross profit and net asset (liability) position reported under the percentage- of- completion method (from P8- 6) and the completed- contract method.
In P8- 6

Required
a. Compute the percentage completed for each year.
b. Compute the gross profit and revenue to be recognized each year of the contract.
c. Prepare the journal entries required for each year of the contract.
d. Prepare the t- accounts for Construction in Progress, Billings on Construction in Progress, and Accounts Receivable.
e. Determine the net asset (liability) for each year of the contract on December 31.

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Contract price $2.000.000 2015 2016 2017 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs S 900,000 300,000 S 600,000 0 900,000 $1,200,000 S 900,000 $1.200,000 S1,800,000 600,000 400,000 $1,500,000 $1.600,000 $1,800,000 Progress billings made during the year Cash collections during the year 700,000 S 700,000 S 600,000 800,000 S 400,000 S 800,000