Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,442,000. Other details follow:

		2014		2015
Costs incurred during the year		$710,400		$1,581,750
Estimated costs to complete, as of December 31		1,065,600		0
Billings during the year		466,200		1,864,800
Collections during the year		388,500		1,665,000

Instructions

(a)	What portion of the total contract price would be recognized as revenue in 2014? In 2015?

(b)	Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2015?

(c)	Prepare a complete set of journal entries for 2014 (using the percentage-of-completion method).