Tuscany Boatbuilders was recently awarded a $16,700,000 contract to construct a luxury liner for Queen Cruiseliners Inc. Tuscany estimates it will take 42 months to complete the contract. the company uses the cost-to-cost method to estimate profits. The following information details the actual and estimated costs for the years 2014-2017. 2014.......annual cost-current year $6,400,000 2014 estimated cost to complete $8,700,000

2015 actual cost current year 5,200,000 estimated cost to complete 4,600,000

2016 actual cost current year 4,100,000 estimated cost to complete 1,500,000

2017 actual cost current year 1,065,000 estimated cost to complete 0

Instructions:

1. compute the revenue, cost, and gross proft to be recognized for each of the years 2014-2017 under the percentage of completion method (Note: round percentage to two decimal places for percentage complete)

2. give the journal entries for each of the years 2014-2017 to record the information from (1)