3.

Maryland Quality Homes (MQH) constructed a new subdivision during 2015 and 2016 under contract with Mason-Dixon Co. Relevant data are summarized below:

Contract amount		$3,000,000
Cost:	2015	1,200,000
	2016	600,000
Gross profit:	2015	800,000
	2016	400,000
Contract billings:	2015	1,500,000
	2016	1,500,000

3a. MQH recognizes revenue over time with respect to these contracts. What would be the journal entry made in 2015 to record revenue (and show computations)?

3b. MQH recognizes revenue over time with respect to these contracts. For 2016, what is the journal entry to record revenue (and show computations)?

3c. MQH recognizes revenue upon completion of the contract.

For 2015, what is the journal entry to record revenue (and show computations)?