Cullumber Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed price contract for $2.6 million beginning September 1, 2020, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2022. The following data pertain to the construction period.

		2020		2021		2022
Costs to date		$816,000		$1,664,400		$2,182,000
Estimated costs to complete		1,584,000		525,600		0
Progress billings to date (non-refundable)		860,000		2,132,000		2,600,000
Cash collected to date		716,000		2,023,000		2,600,000

Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		2020		2021		2022
Gross profit / (loss)		$		$		$

Using the percentage-of-completion method, prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when 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.)

For Year 2020:

Account Titles and Explanation	Debit	Credit
(To record cost of construction)
(To record progress billings)
(To record collections)
(To record revenues)
(To record construction expenses)

For Year 2021:

Account Titles and Explanation	Debit	Credit
(To record cost of construction)
(To record progress billings)
(To record collections)
(To record revenues)
(To record construction expenses)

Using the percentage-of-completion method, what is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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

Using the percentage-of-completion method, show how the construction contract would be reported on the statement of financial position (SFP) and the income statement for the year ended December 31, 2021.

CULLUMBER CONSTRUCTION INC. Partial Statement of Financial Position December 31, 2021Month Ended December 31, 2021Quarter Ended December 31, 2021
select an opening name for subsection one Current AssetsIntangible AssetsCurrent LiabilitiesLong-term LiabilitiesProperty, Plant and EquipmentShareholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal LiabilitiesTotal Liabilities and Shareholders' EquityTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Shareholders' Equity
		$
select an opening name for subsection one Current AssetsIntangible AssetsCurrent LiabilitiesLong-term LiabilitiesProperty, Plant and EquipmentShareholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal LiabilitiesTotal Liabilities and Shareholders' EquityTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Shareholders' Equity
		$

CULLUMBER CONSTRUCTION INC. Partial Income Statement Month Ended December 31, 2021Year Ended December 31, 2021Quarter Ended December 31, 2021
		$
select a summarizing line for the first part Operating ExpensesTotal RevenuesExpensesTotal ExpensesDividendsIncome from OperationsOther Expenses and LossesRevenuesGross Profit / (Loss)Net Income / (Loss)

Using the zero-profit method, calculate the estimated gross profit that would be recognized during each year of the construction period. (

		2020		2021		2022
Gross profit / (loss)		$		$

Using the zero-profit method, prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.) (

For Year 2020:

Account Titles and Explanation	Debit	Credit
(To record cost of construction)
(To record progress billings)
(To record collections)
(To record revenues)
(To record construction expenses)