In 2015 The Big Boss Construction Company, started a 3 year project at a fixed contract price of $22,000,000. The estimated construction costs were $15,500,000. The project was completed on time during the 2917 year. The following information is available for the three year period of the construction project.

2015 2016 2017

Costs Incurred to Date $6,188,000 $12,360,000 $15,875,000

Estimated Costs to Complete 9,282,000 3,090,000 --

Billings to Date 6,400,000 18,890,000 22,000,000

Collections to Date 5,100,000 17,110,000 21,630,000

Required

1. Compute the amount of gross profit to be recognized for each of the three years using the percentage of completion.

2. Prepare all necessary journal entries for the 2015, 2016, and 2017 years using the percentage of completion method.

3. Compute gross profit to be recognized for the three years of 2015, 2016, and 2017 using the completed contract method.

4. For each of the three years of 2015, 2016, and 2017:

a. Prepare the Income Statement section for Big Boss Construction reporting percentage of completion information.

b. Prepare the Balance Sheet section for Big Boss Constriction reporting percentage of completion information.