Below is information related to a construction contract for company ABC. The contract price is 9 million. 2019 2020 2021 2022 Costs incurred (accumulated) to date $ 1,500,000 $ 4,000,000 $ 4,750,000 Estimated costs to complete the project 3,400,000 700,000 0 Customer billings (Billings) 4,000,000 3,000,000 2,000,000 Cash Received from Customer 0 4,000,000 3,000,000 2,000,000

TEACHER NOTE: I am repeating the table with summarized numbers in case your device does not allow you to view the entire table above. M = millions k = thousands 2019 2020 2021 2022 Costs incurred (accumulated) to date $ 1.5M $ 4M $ 4.75M Estimated costs to complete the project 3.4M 700k 0 Customer billings (Billings) 4M 3M 2M Cash Received from Customer 0 4M 3M 2M Instructions:

1. Assuming the company uses the Percentage of Completion method, prepare all the necessary inputs for 2020 only. (4.5 points)

2. Assuming the company uses the Percentage of Completion method, prepare the section in the 2020 Balance Sheet that applies. (3 points)

3. How much is the balance of the Construction in Progreso account as of 12/31/2021? (1.5 point)