Hamilton Construction Company contracted to build a dam for the City of Richmond on January $1,$

The contract price is $$13,000,000$ and Hamilton estimates costs to be $$8,550,000.$ The dam

will take two years to complete, and the following information is available on December $31$ at the

end of each year.

Actual Costs to Date $*$

Est. Costs to Complete

Billings to Date

Cash Collections to Date

$60\%$ in cash, $40\%$ from materials inventory

Required:

$($a$)$ Record all relevant entries for $2025$ under the percentage of completion method. In

calculating gross profit, round percentages to the nearest hundredth. Your entries must be in

good form $($debited account$($s$)$ before credited account$($s$)$ with the credited accounts

indented; ending zeroes align in both the debit and credit columns as shown in class, etc.$)$

$($b$)$ Describe in one sentence how your answer to part $($a$)$ would differ under the completed

contract method.