I believe I have the excel worksheet completed correctly, but would appreciate feedback.

The Ugenti Construction Company contracted to construct a warehouse building for $2,600,000. Construction began in 2016 and was completed in 2017. Data relating to the contract are summarized below:

2016 2017

Costs incurred during the year................. $ 360,000 $1,650,000

Estimated costs to complete as of 12/31.. 1,560,000 -

Billings during the year .......................... 430,000 2,170,000

Cash collections during the year.............. 320,000 2,280,000

Required:

1. Compute the amount of gross profit or loss to be recognized in 2016 and 2017 using the percentage-of-completion method (over time method).

2. Compute the amount of gross profit or loss to be recognized in 2016 and 2017 using the completed contract method (at point in time).

Using Excel, complete this construction handout using the either the format in the textbook or the format in the ABC Construction Contract Worksheet Example posted in Bb. Include all necessary journal entries to record the cost of construction, progress billings, entry to recognize revenue and gross profit and entry to record final approval of the contract.

B D E G H 1 K L Ugenti Construction Date Credit 2016 2,600,000 $ 2017 2,600,000 Debit $360,000 Contract Price Accounts 2016 Constuction in Process Accounts Payable $ $360,000 $ 1,650,000 $ 430,000 Construction Costs: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2016 Accounts receivable Billings on Construction in Process $ $ 430,000 360,000 1,560,000 430,000 $ 320,000 $ $ 2,170,000 2,280,000 $ 320,000 2016 Cash Accounts Receivable $ 320,000 2,017 2,600,000 2,010,000 $1,650,000 2017 Construction in Process Accounts Payable $1,650,000 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit $ $ S $ $ $ 2,016 $ 2,600,000 $ 360,000 $ 1,560,000 $ 1,920,000 $ 680,000 $ $2,170,000 2,010,000 590,000 2017 Accounts Receivable Billing on Construction $2,170,000 Precentage of completion 2017 $2,280,000 2016 18.75% 2017 Cash Accounts Receivable $ 2,280,000 Gross profit recognition $ 127,500 $ 462,500 $2,600,000 2017 Billings on Construction Contract Revenue from long-term contracts $ 2,600,000 Completed contract method $ 590,000 $2,010,000 2017 Construction Expenses Construction in Process $ 2,010,000