In January 2019, Miller Construction Corp. contracted to construct a building for $3,600,000. Construction started in early 2019 and was completed in 2020. The following additional information is available:

2019 2020

Costs incurred...................................................... $1,458,000 $1,620,000

Estimated costs to complete.................................. 1,560,000

Billed . 1,700,000 1,900,000

Collections during the year.................................... 1,440,000 2,160,000

Miller uses the percentage-of-completion method.

Instructions

Under the contract-based approach for percentage completion,

a) How much revenue should Miller report for 2019 and 2020?

b) Prepare all journal entries for 2019 and 2020 for this contract.

c) What amounts would be presented on Millers December 31, 2019 Balance Sheet?

d) What is the gross profit on the project for each of 2019 and 2020?