On January 1, 2020, Red Sox Construction Ltd. started a construction project for $ 4,500,000. Relevant data for 2020 and 2021 are as follows:

2020 2021

Current year construction costs $ 3,300,000 $ 620,000

Estimated remaining costs to complete 600,000 -0-

Current year billings 3,100,000 1,400,000

Current year collections 3,000,000 1,050,000

Instructions

Calculate the following amounts using the percentage of completion method. Please round all your answers to the nearest dollar:

1. The amount of revenue recognized using the percentage completion method for 2020 and 2021. (3 marks)
2. The amount of gross profit for 2020 and 2021. (4 marks)
3. The year-end balance of Construction Contract Asset (Liability) for 2020 and 2021. (3 marks)
4. The year-end balance of Accounts Receivable for 2020 and 2021. (2 marks)