Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $$6,395,000.$ Construction activities are summarized below by year:

$20$X$220$X$320$X$4$

Costs incurrd during the year $1,708,0001,789,0003,068,329$

Estimated cost to complete $3,404,0003,025,5000$

Required:

Cash

Construction costs

Contract Asset

Contract Costs

Revenue

$1.$ Prepare the journal entries for revenue recognition for each year. $2.$ Calculate the gross margin for each year on the contract