In 2021, Jeff Rouse Construction Company agreed to construct an apartment building at a price of $2,000,000. The information relating to the costs and billings for this contract is as follows:

2021 2022 2023

Costs incurred current year $560,000 $640,000 $370,000

Costs incurred to date $560,000 1,200,000 1,570,000

Estimated total cost to complete 1,600,000 1,600,000 1,570,000

Customer billings to date 150,000 400,000 1,000,000

Collection of billings to date 120,000 320,000 940,000

Required:

1. Compute the amount of revenue, expense, and gross profit recognized for each year under the percentage of completion method and completed contract method. Please organize your answer as follows (you must also show your complete computations):

Items	Percentage of completion method			Completed contract method
	2021	2022	2023	2021	2022	2023
Revenue recognized
Expense recognized
Gross Profit recognized

2. Prepare all necessary journal entries for 2021, 2022, and 2023 under the "percentage of com