Dalton Construction Co. contracted to build a bridge for $8,000,000. Construction began in 2014 and was completed in 2015. Data relating to the construction are:

2014 2015

Costs incurred $2,640,000 $2,200,000

Estimated costs to complete 2,160,000

Dalton uses the percentage-of-completion method.

Instructions

(a) How much revenue should be reported for 2014? Show your computation.

(b) Make the entry to record progress billings of $3,300,000 during 2014.

(c) Make the entry to record the revenue and gross profit for 2014.

(d) How much gross profit should be reported for 2015? Show your computation.