Your company Construction Co. entered contract to refurbish a shopping center in September 2020. This includes installation of new elevators.

Total Value for contract is 6 million. Your company expects to incur costs of $5 million, including $2 million on elevators. Your company doesnt design or manufacture the elevators.

The escalators are delivered in December 2020. At end of 2020, total costs incurred on contact, not including escalators, is $1.5 million

How should Construction Co. record amounts for revenue, cost, and profit for their shopping mall contract at end of December 2020?

Clearly communicate your proposed solution to the accounting problem you identified in section one. Explain and lay out all the steps involved in your solution. This will usually involve calculations and journal entries.