Smith Excavation and Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are:

2021 2022

Costs incurred during the year $3,300,000 $2,750,000

Estimated costs to complete 2,700,000

Dalton uses the percentage-of-completion method.

Instructions

(a) How much revenue should be reported for 2021? Show your computation.

(b) Make the entry to record progress billings of $4,100,000 during 2021.

(c) Make the entry to record the revenue and gross profit for 2021.

(d) How much gross profit should be reported for 2022? Show your computation.