In the year 2018, the Donald Duck Construction Company entered into a contract to construct a road for Dade County for $15,000,000. The road was completed in 2020. Information related to the contract is as follows:

2018 2019 2020

Costs incurred during the year $4,000,000 $4,800,000 $4,200,000

Estimated costs to complete as of

year-end 8,000,000 4,000,000 -

Billings during the year 3,500,000 5,000,000 6,500,000

Cash collections during the year 2,800,000 5,600,000 6,600,000

Donald Duck recognizes revenue over time according to the percentage-of-completion method.

Required:

1. Calculate the amount of gross profit to be recognized in each of the three years. Round all percentages to the nearest hundredth percent.

2. Prepare all necessary journal entries for each of the years (credit Various accounts for construction costs incurred).

3. Prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.

4. Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information:

2018 2019 2020

Costs incurred during the year $4,000,000 $4,200,000 $7,200,000

Estimated costs to complete as of

year-end 8,000,000 7,100,000 -

In the year 2018, the Donald Duck Construction Company entered into a contract to construct a road for Dade County for $15,000,000. The road was completed in 2020. Information related to the contract is as follows: Donald Duck recognizes revenue over time according to the percentage-of-completion method. Required: 1. Calculate the amount of gross profit to be recognized in each of the three years. Round all percentages to the nearest hundredth percent. 2. Prepare all necessary journal entries for each of the years (credit "Various accounts" for construction costs incurred). 3. Prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. 4. Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information