In 2017, the Smith Construction company entered into a contract to construct a bridge for San Diego County for $1,650,000. The road was completed in 2019. The following information is related to the contract:

Required:

1Calculate the amount of gross profit to be recognized in each of the three years. Provide the analysis supporting the gross profit amount.

2Prepare all necessary journal entries for each of the three years.

Further, assume the following information instead of that presented above

3Calculate the amount of gross profit to be recognized in each of the three years. Provide the analysis supporting the gross profit amount.

Next, use the following information instead of that presented above:

4Calculate the amount of gross profit to be recognized in each of the three years. Provide the analysis supporting the gross profit amount.

Finally, once the solutions to the questions have been developed in Excel, you will then complete a Word document discussing the development of the results, paying particular attention to the gross profit recognition and the balance sheet data. You will need to insert Excel data into the document where appropriate to support the discussion. This data will be inserted as a picture after copying from Excel, as you use the Paste Special function in Word. I have posted a direct link in Blackboard that will illustrate for you the proper method for bringing Excel information into a Word document to support the written discussion.

Prepare, using Excel, the solution for the required information.

2017 2018 2019 635,000 Costs incumed 390,000 1,010,000 360,000 320,000 390,000 410,000 625,000 410,000 380,000 800,000 Estimated costs to complete Biings duing year Cash collections duing year 880,000 950,000 1,435,000 Curmulative costs to date 2017 2018 2019 Costs incumed 375,000 1,045,000 320,000 850,000 755,000 Estimated costs to complete 2017 2018 2019 512,000 Costs incumed 403,000 1,012,000 610,000 697,000 Estimated costs to complete 2017 2018 2019 635,000 Costs incumed 390,000 1,010,000 360,000 320,000 390,000 410,000 625,000 410,000 380,000 800,000 Estimated costs to complete Biings duing year Cash collections duing year 880,000 950,000 1,435,000 Curmulative costs to date 2017 2018 2019 Costs incumed 375,000 1,045,000 320,000 850,000 755,000 Estimated costs to complete 2017 2018 2019 512,000 Costs incumed 403,000 1,012,000 610,000 697,000 Estimated costs to complete