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The Aqua Company is involved in a three-year long-term contract. The following data relate to this contract: 2016 2017 2018 Total Contract Price $ 200,000

The Aqua Company is involved in a three-year long-term contract. The following data relate to this contract:
2016 2017 2018 Total
Contract Price $ 200,000
Costs incurred each year $ 24,000 $ 56,000 $ 30,000 $ 110,000
Costs incurred to date $ 24,000 $ 80,000 $ 110,000
Estimated cost to complete $ 96,000 $ 40,000 $ -
Partial billings each year $ 50,000 $ 112,000 $ 38,000
Cash collected from billings $ 35,000 $ 120,000 $ 45,000
Required:
Prepare the journal entries for each of the following assuming Aqua satisfies its performance obligation.
2016 Entries
a. Construction costs for the year
b. Partial billings
c. Cash collections
d. Gross Profit
2017 Entries
a. Construction costs for the year
b. Partial billings
c. Cash collections
d. Gross Profit
2018 Entries
a. Construction costs for the year
b. Partial billings
c. Cash collections
d. Gross Profit and closing of construction accounts

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