Amelio Corp. builds long & sturdy suspension bridges. This is an extremely risky line of business. Amelio Corp. typically works on lengthy projects that span multiple years, given the construction, testing, and quality control involved in each project.  Management of Amelio Corp. is extremely excited to have won a bid to build a suspension bridge in a core tourist area of Palimi City for a contract value of $12 million. The information below outlines the relevant cost, billings, and collection data for the three-year length of the project:

1. Under the Completed Contract Approach (ASPE), for each of the three years:

(a) Prepare all journal entries related to the long-term construction contract of the suspension bridge.

(b) Prepare partial balance sheets and income statements at December 31.

2. Under the Percentage of Completion Approach (IFRS/ASPE), for each of the three years:

(a) Prepare all journal entries related to the long-term construction contract of the suspension bridge.

(b) Prepare partial balance sheets and income statements at December 31.
 

+ 2020 2019 2018 All amounts in thousands of dollars Costs incurred during the year $3,000 $3,800 $1,000 6,250 3,000 750 0 2,700 7,000 675 Billings during the year Estimated costs to complete Collections during the year 6,500 2,700