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Manchester Victorian construction Inco. Signed a new contract on the 10th of May, 2020. The contracted is assigned with a price of 8.4 million and

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Manchester Victorian construction Inco. Signed a new contract on the 10th of May, 2020. The contracted is assigned with a price of 8.4 million and the company expects that it will take approximately 3 to 4 years to complete the project. The following are the related cost, billing and collection over years 2020-2023: 2020 2021 2022 2023 Cost during the year $1,100,000 $2,570,000 $3,162,000 $1,388,000 Cost to complete $5,100,000 $3,750,000 $1,728,000 - Billing During the year $1,000,000 $2,000,000 $4,000,000 $1,500,000 Collection during the year $800,000 $1,750,000 $3,000,000 $2,950,000 You are required to calculate the revenues, construction expense, accumulated cost and gross profit for each year under both methods: Percent of completion method 2020 2021 2022 2023 Revenues Construction expense Gross profit or loss Accumulated actual cost Zero profit method 2020 2021 2022 2023 Revenues Construction expense Gross profit or loss Accumulated actual cost

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