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PHIL Construction, Inc. had a 3-year project whose contract price was $8,000,000. Construction activities are summarized in the table below.
12/31/14
12/31/15
12/31/16
Costs to date
2,000,000
5,000,000
6,000,000
Additional costs to complete
3,000,000
1,000,000
-0-
Progress billings to date
2,500,000
5,500,000
8,000,000
Cash collected to date
2,300,000
5,400,000
Instructions: Prepare any necessary journal entries for the above project in 2014, 2015 & 2016 using 1) the percentage of completion method, 2) the completed contract method.
Thank you very much in advance.
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