Percentage Completion Method: Greyhound Construction Company is doing contract work for Better Homes Company. The grid below shows cost and revenue information pertinent to the job (round calculations to nearest cent, i.e. two decimal places):

	2010	2011	2012
Contract Price	$2,700,000	$2,700,000	$2,700,000
Estimated Total Cost of Project:	$2,400,000	$2,400,000	$2,400,000
Cost Incurred Current Year	$600,000	$1,144,000	$656,000
Estimated Cost to Complete	$1,800,000	$656,000	$0
Billings to Customer Current Yr.	$540,000	$1,440,000	$720,000
Cash Receipts from Customer Current Yr.	$450,000	$1,050,000	$1,200,000

	2010	2011	2012
Cost Incurred to Date
Estimated Cost to Complete
Estimated Total Contract Cost
Estimated Percent Complete **
Contract Price
Revenue Recognizable
Revenue Recognized Prior Year
Revenue Recognized Currently
Costs Incurred Currently
Gross Profit Recognized

** Round completion percent to two decimals

Part A:

The gross profit recognized for year 2010 is: __________________

Part B:

The gross profit recognized for year 2011 is: __________________

Part C:

The gross profit recognized for year 2012 is: _________________

Part D:

Complete the Journal entries for 2010-2011 using the grid below:

	2010		2011
Construction in Progress
Cash
Accounts Receivable
Billings on Contract
Cash
Accounts receivable
Construction in Progess
Construction Expense
Construction Revenue

Part E:

Complete the income statement for years 2010-2012

Income Statement:	2010	2011	2012
Revenue on Contracts
Cost of Construction
Gross Profit