On February 1, 2020, K Contractors agreed to construct a building at a contract price of $17,400,000. K estimated total construction costs would be $12,000,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:

	2020	2021	2022
Total costs incurred to date	$4,500,000	$ 7,920,000	$13,800,000
Estimated costs to complete	7,500,000	5,280,000	-0-
Customer billings to date	6,600,000	12,000,000	16,800,000
Collections to date	6,000,000	10,500,000	16,500,000

Instructions A. Fill in the correct amounts on the following schedule to indicate the gross profit that should be recorded for percentage-of-completion accounting and for completed-contract accounting for each of the years 2020, 2021 and 2022. Please show your work.

	Percentage-of-Completion	Completed-Contract
	Gross Profit	Gross Profit
2020
2021
2022

B. Provide the journal entry for Revenue from long-term contract, construction expense and construction in progress for 2021 if the estimated costs to complete are $6,000,000 instead of $5,280,000.