On February 1, 2010, Marcos Contractors agreed to construct a building at a contract price of $3,000,000. Marcos estimated total construction costs would be $2,000,000 and the project would be finished in 2012. Information relating to the costs and billings for this contract is as follows:

? 2010?? 2011?? 2012?

Total costs incurred to date?$ 750,000?$1,320,000?$2,300,000

Estimated costs to complete?1,250,000? 880,000?-0-

Customer billings to date?1,100,000? 2,000,000?3,000,000

Collections to date?1,000,000? 1,750,000?2,950,000

Instructions

1. Fill in the correct amounts on the following schedule. For percentage-of-completion and for completed-contract accounting, show the gross profit that should be recorded for 2010, 2011, and 2012.

2. Prepare all entries for 2010, 2011, and 2012 for Marco.

3. Prepare Statement of Financial Position ends of 2010, 2012 and 2011(if any) under Percentage of-completion-method, completed-contract method.