Chiefs Construction Company has contracted to build an office building. The construction is scheduled to begin on January 1, 2020, and the estimated time of completion is July 1, 2023. The building cost is estimated to be $20,000,000 and will be billed at $24,000,000. The following data relate to the construction period:

	2020	2021	2022	2023
Cost to date	5,500,000	10,000,000	13,500,000	20,000,000
Estimated cost to complete	14,500,000	10,000,000	6,500,000	-0-
Progress billings to date	3,000,000	9,000,000	14,000,000	24,000,000
Cash collected to date	3,000,000	7,500,000	12,500,000	24,000,000

1) Compute the estimated gross profit for 2020, 2021, 2022, and 2023 assuming that the percentage-of-completion method is used.

2) Prepare the necessary journal entries for Chiefs Company for the years 2022 and 2023 under percentage-of-completion method.

3) Prepare the necessary journal entries for Chiefs Company for the years 2022 and 2023 under completed contract method.