In 2020, Company began construction work on a contract with a contract price of $8,400,000. Other data are as follows:

	2020	2021
costs inccured to date	2,400,000	5,250,000
estimated costs to complete	3,600,000	1,750,000
billings to date	1,800,000	7,800,000
collections to date	1,240,000	6,200,000

Required

1. Assuming Company uses the percentage-of-completion method:

   1. How much gross profit should be recognized in 2020?

   2. Show Company journal entries for activity during 2020.

   3. Show Company journal entry to record revenue at the end of 2020.

   4. How much gross profit should be recognized in 2021?

   5. Show Company journal entry to record revenue at the end of 2021.

2. Assuming Company uses the completed-contract method:

   1. How much construction revenue should be recognized in 2020?

   2. How much construction revenue should be recognized in 2021?