Question:

requirment:

nexperienced construction company Riverbed Corp. signed a risky non-cancellable contract to build a research facility at a fixed ontract amount of $2,100,000. The work began in early 2020 and Riverbed incurred costs of $945,000. At December 31,2020 , stimated future costs to complete the project totalled $945,000. During 2021, Riverbed ran into trouble with weather condition ncurred the expected costs of $945,000 and estimated that it would need to spend an additional $340,000 to complete the proje During 2022, Riverbed reluctantly completed the project, incurring further costs of $355,000. Calculate the amount of gross profit or loss that should be recognized each year under the percentage-of-completion method. (Fn Prepare the December 31,2021 year-end journal entry to record costs, revenues, expenses, and losses from the contract. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round percent complete to 2 decimal places, e g. 15.25.)