1.During 2014, Nilsen Company started a construction job with a contract price of $1,712,000. The job was completed in 2016. The following information is available.

		2014		2015		2016
Costs incurred to date		$428,000		$882,750		$1,144,900
Estimated costs to complete		642,000		294,250		0
Billings to date		321,000		963,000		1,712,000
Collections to date		288,900		866,700		1,524,750

Prepare all necessary journal entries for 2015, assuming all costs are on account. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record costs of construction)
(To record progress billings)
(To record collections)
(To recognize revenue and gross profit)

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Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

2.

Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,640,000. Other details follow:

		2014		2015
Costs incurred during the year		$768,000		$1,710,000
Estimated costs to complete, as of December 31		1,152,000		0
Billings during the year		504,000		2,016,000
Collections during the year		420,000		1,800,000

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What portion of the total contract price would be recognized as revenue in 2014? In 2015?

		2014		2015
Total contract price		$		$

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Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2014? in 2015?

		2014		2015
Total contract price		$		$

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Prepare a complete set of journal entries for 2014, assuming all costs are on account (using the percentage-of-completion method). (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
R
(To record costs of construction)
(To record progress billings)
(To record collections)
(To recognize revenue and gross profit)