The Rushing Construction Company obtained a construction contract to build a highway and bridge over the Snake River It was estimated at the beginning of the contract that it would take 3 years to complete the project at an expected cost of \($50,000,000\).The contract price was \($60,000,000.\) The project actually took 4 years, being accepted as completed late in 2003. The following information describes the status of the job at the close of production each year.

Instructions:
1 . What is the revenue, cost, and gross profit recognized for each of the years 2.2000-2004 under (a) the percentage-of-completion method and (b) the completedcontract method?
Give the journal entries for each year assuming that the percentage-of-compietion method is used.

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2000 2001 2002 2003 2004 Actual cost incurred $12,000,000 $18,160,000 $14,840,000 $10,000,000 $ 0 Estimated cost to complete 38,000,000 27,840,000 10,555,555 0 0 Collections on contract 12,000,000 13,500,000 15,000,000 15,000,000 4,500,000 Billings on contract........ 13,000,000 15,500,000 17,000,000 14,500,000 0