1. Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows:

2018 2019 2020 Costs to date $1,500,000 $4,000,000 $6,200,000 Cost to complete $4,500,000 $2,200,000 $0

Amounts billed to date $1,400,000 $5,800,000 $9,000,000 Amounts collected to date $1,300,000 $4,300,000 $9,000,000

Determine the gross profit to be recognized for

2018 2019 2020

Record all journal entries necessary for 2018 below:

Assume that Stanford uses the completed contract method. Determine the amount of revenue and expense to be recognized in: 2018 2019 2020