Problem #4: The Cool Construction Company builds office buildings. During 2016, Cool Construction began construction of an office building for Data Mount Industries. The total contract price is $20 million. Cool Construction is allowed to use the % of completion method for the contract. Costs incurred, estimated costs to complete at year-end, billings and cash collections for the life of the contract are as follows: Costs incurred during the year Estimated costs to complete the project Billings during the year Cash collections during the year 2016 $4,000,000 $12,000,000 $2,000,000 $1,800,000 2017 $9,500,000 $4,500,000 $10,000,000 $8,600,000 2018 $4,500,000 $0 $8,000,000 $9,600,000 1. Briefly explain the difference between recognizing revenue over time and recognizing revenue upon project completion. 2. Complete the worksheet in Excel (similar to what we did in class - use formulas). 3. Complete the journal entries on the following page and transfer it to your Excel Workbook.

Problem H4: The Cool Construction Company builds office buildings. During 2016, Cool Construction began construction of an office building for Data Mount industries. The total contract price is $20 million. Cool Construction is allowed to use the \% of completion method for the contract. Costs incurred, estimated costs to complete at year-end, billings and cash collections for the life of the contract are as follows: 1. Briefly explain the difference between recognizing revenue over time and recognizing revenue upon project completion. 2. Complete the worksheet in Excel (similar to what we did in class - use formulas). 3. Complete the journal entries on the following page and transfer it to your Excel Workbook