question 1

4. Coquel Company has a non-cancellable contract to construct a bridge for an estimated cost of $ 1,950,000. The contract is to start in July 2020, and the bridge is to be completed in September 2022. The following data pertain to the construction period. Assume that progress billings are non-refundable. 2022 2021 2020 $390,000 $ 900,000 $360,000 Costs to date 380,000 1,260,000 Estimated costs to complete 420 Doo -1,200,000 765,000 305,000 Progress billings during the year 2,000,000 760,000 280,000 Cash collected during the year Instructions 1. Assuming that Coquel Company uses the zero-profit method prepare the appropriate journal entries to recognize revenue over the life of the contract. 2. Assuming that Coquel Company uses the percentage-of-completion method prepare the appropriate journal entries to recognize revenue over the life of the contract