Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below:
		Year 1	Year 2	Year 3
Sale price		$2,800,000	$2,800,000	$2,800,000
Estimated costs		1,600,000	2,000,000	2,000,000
Costs incurred to date (paid in cash)		400,000	900,000	2,000,000
Billed to date		250,000	1,150,000	2,800,000
Received in cash to date		190,000	950,000	2,800,000

The Balance Sheet at the end of Year 2 will show a
Question 7:
Answer the following questions:
1	What is the gross profit recognized in Year 3?
2	What amount is shown on the Balance Sheet at the end of Year 3?
3	Assume the total estimated costs are $3,000,000 in Year 2. All other amounts remain the same as above. What is the gross profit recognized in Year 2 under this new assumption?
Completed Contract (Revenue recognized upon Completion)
Question 1:
Calculate the gross profit booked in Year 1
Question 2:
Book the following journal entries for Year 1:
1) Record Costs Incurred
2) Record Billings on Contract
3) Record Payments Received
4) Record Revenue/Cost during Construction Period
Question 3:
The Balance Sheet at the end of Year 1 will show a				$
Question 4:
Answer the following questions:
1	What is the gross profit recognized in Year 3?
2	Assume the total estimated costs are $3,000,000 in Year 2. All other amounts remain the same as above. What is the gross profit recognized in Year 2 under this new assumption?
3	What is/are the final journal entry for Year 3, assuming all of the amounts as originally stated?