Carla Vista Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $9.8 million. The following data pertain to the construction period (all figures in thousands).

		2020		2021		2022
Costs for the year		$3,600		4,400		2,000
Estimated costs to complete		4,400		2,000		-0-
Progress billings for the year (non-refundable)		3,275		3,825		2,700
Cash collected for the year		2,885		3,875		3,040

Using the percentage-of-completion method, calculate the percent complete for 2020 and 2021.

		2020		2021
Percent complete

Calculate the amount of revenue to be recognized in 2020 and 2021.

		2020		2021
Revenue recognized

Calculate the construction costs to be expensed in 2021.

Construction costs

Prepare the journal entry at December 31, 2021, to record long-term contract revenues, expenses, and losses for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the journal entry at December 31, 2021, to record long-term contract revenues, expenses, and losses for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021?

		December 31, 2020		December 31, 2021
Balance in the Contract Asset/Liability account

CARLA VISTA ENTERPRISES LID. Partial Statement of Financial Position CARLA VISTA ENTERPRISES LTD. Partial Income Statement $ $ CARLA VISTA ENTERPRISES LID. Partial Statement of Financial Position CARLA VISTA ENTERPRISES LTD. Partial Income Statement $ $