Its really important that i get a full credit!!!

Electric Boat, Inc., of New London, Connecticut, began operation on the construction of a new deep sea discovery submarine for the US Navy. On January 2, 2016, and entered into a contract. This project was signed for the contract price was $6,000,000 and provided for penalties of $100,000 per week for late completion. Although during 2016 the project had been on schedule for timely completion, it was completed four weeks late on August 31, 2017.

The following data pertains to the separate long-term construction projects in progress:

As of December 31, 2016: Costs incurred to date $2,400,000

Estimated costs to complete 600,000

Billings on 12/31/16 3,150,000

Cash collection on 12/31/16 2,550,000

As of August 31, 2017: Costs incurred to date 3,000,000

Estimated costs to complete 0

Billing on 8/31/17 2,450,000

Cash collection 8/31/17 3,050,000

Additional information >> Electric Boat accounts for its long-term construction contracts using the percentage-of- completion method.

1. What amounts should Electric Boat's gross profit (loss) be recognized for the years ended December 31, 2016, and 2017, under the percentage-of-completion method.

2.Using the information about the Electric Boat, prepare the following general journal entries without explanation:

> 12/31/16: Costs incurred for the year

> 12/31/16: Progressive Billings & Collections for the year

> 12/31/16: Revenue Recognition for the year

> 12/31/17: Costs incurred for the year

> 12/31/17: Progressive Billings & Collections for the year

> 12/31/17: Revenue Recognition for the year

> 12/31/17: Closing for the Long Term Contract accounts