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In 2020 the Drill a Mountain Tunnel Company, started a 3 -year project at a fixed contract price of $22,000,000. The estimated construction costs were
In 2020 the Drill a Mountain Tunnel 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 2022 year. The following information is available for the three year period of the construction project. Required a. Compute the amount of gross profit to be recognized for each of the three years using the percentage of completion. b. Prepare all necessary journal entries for the 2020, 2021, and 2022 years using the percentage of completion method. c. Compute gross profit to be recognized for the three years of 2020 , 2021 , and 2022 using the completed contract method
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