Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,375,000. Construction activities are summarized below by year:

Required:

1. Prepare the journal entries for revenue recognition for each year.

2. Calculate the gross margin for each year on the contract.

Transcribed Image Text:

Costs incurred during the year Estimated cost to complete 20X2 20X3 20X4 1,700,000 1,785,000 3,060,000 3,400,000 3,017,500 0