Q.3 Brown Construction Company has a contract to construct a $620,000 shopping mall at an estimated cost of $450,000. The contract is to start in 2019, and the shopping mall is to be completed in 2021. The following data pertain to the construction period.

	2019	2020	2021
Yearly Cost	$ 72,800	$ 140,640	$ 252,000
Cost to Date (cumulative)	72,800	213,440	465,440
Estimated Cost to Complete	382,200	250,560	-
Progress Billing During The Year	91,200	280,000	248,800
Cash Collected During The Year	88,000	275,000	242,500

Required:

a. Prepare partially Income Statements for the year 2019, 2020, and 2021 by using Completed Contract Method.

b. Prepare partially Income Statements for the year 2019, 2020, and 2021 by using Percentage of Completion Method. Show your calculations.

c. Prepare the partially Balance Sheet as of December 31, 2019 by using Percentage of Completion Method.