National Construction agreed to construct a building for Berninger Corp with construction beginning on March 15, 2020. The project's contract price is $5,910,000, and National Construction estimates total construction costs would be $4,088,000. The project is scheduled to finish in 2022. Information relating to the costs and billings for this contract is as follows:

	2020	2021	2022
Total costs incurred to date	$1,533,000	$2,706,000	$4,655,000
Estimated costs to complete	2,555,000	1,804,000	-0-
Customer billings to date	2,310,000	4,088,000	5,710,000
Collections to date	2,110,000	3,610,000	5,610,000

1. How much gross profit should be recorded for 2020, 2021, and 2022. Assuming National Construction uses the percentage-of-completion method of accounting for long-term contracts? Show your work.
2. Prepare the necessary 2020 journal entries for National Construction related to the above contract assuming they use the percentage-of-completion method to account for long-term contracts. Your journal entries should include entries to record constructions costs incurred, progress billings, cash collections, and gross profit recognition, if any.

   1. Date	Account	Debit	Credit

      c. How would your answer to part a) above change if National Constructions uses the completed contract method of accounting? That is, how much gross profit would National Construction recognized in 2020, 2021, and 2022 if it uses the completed contract method?