Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,380,000. Construction activities are summarized below by year:

	20X2	20X3	20X4
Costs incurred during the year	1,702,000	1,786,000	3,062,083
Estimated cost to complete	3,401,000	3,019,500	0

Required:

1. Prepare the journal entries for revenue recognition for each year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

No	Date	General Journal	Debit	Credit
1	20X2	Contract Asset
		Cash
2	20X2	Cash
		Revenue
3	20X2	Construction costs
		Contract Costs
4	20X3	Contract Costs
		Cash
5	20X3	Cash
		Revenue
6	20X3	Construction costs
		Contract Costs
7	20X4	Contract Asset
		Cash
8	20X4	Cash
		Revenue
9	20X4	Construction costs
		Contract Costs

2. Calculate the gross margin for each year on the contract. (Negative amounts should be indicated by a minus sign.)

	20X2	20X3	20X4
Gross Margin (loss)	$	$	$