In 2017 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 2019 year. The following information is available for the three year period of the construction project

---------------------------------------------- 2017 2018 2019

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

Estimated Costs to complete ............9,282,000 3,090,000 ...................-- 0

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 2017, 2018, and 2019 years using the percentage of completion method.

3. Compute gross profit to be recognized for the three years of 2017, 2018, and 2019 using the completed contract method.