ABC Construction Company uses the percentage-of-completion method of accounting. In 2014. ABC began work under a contract with a contract price of $1,500,000. Other details follow:

2014 2015

Costs incurred during the year $980,000 $1,375,000

Estimated costs to complete, as of December 31 420,000 -0-

Billings to date 800,000 1,500,000

Collections to date 250,000 1,500,000

Instructions

What portion of the total contract price would be recognized as revenue in 2014? Show all calculations.

What portion of the total contract price would be recognized as revenue in 2015? Show calculation.

Prepare a complete set of journals entries for 2014 using percentage-of completion.

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

Prepare the journal entry to record revenue for 2015 under the completed contract method