The Young Company enters into a long-term project to build a new office building. The Contract price is $9,000,000 and Young expects to complete the project in three years. Young gives you the following information for the first two years regarding the project:

	2017	2018
Actual costs incurred during year	2,400,000	3,800,000
Estimated costs to complete at as of December 31:	5,100,000	3,000,000
Amounts billed to customer	2,800,000	4,100,000
Collections from customer	2,600,000	3,400,000

Required:

1. Prepare the journal entries to record the above information for both 2017 and 2018 under the percentage of-completion method.

2. What items would be disclosed on the Companys December 31, 2018 balance sheet?

12	1		Debit	Credit
	2017
	2018
	2
	2018