What the amount of revenue recognized

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Question - On January 1, 2020, Red Sox Construction Ltd. started a construction project for $4,500,000. Relevant data for 2020 and 2021 are as follows:

 

2020

2021

Current year construction costs

$3,300,000

$620,000

Estimated remaining costs to complete

600,000

-0-

Current year billings

3,100,000

1,400,000

Current year collections

3,000,000

1,050,000

Required - Calculate the following amounts using the percentage of completion method. Please round all your answers to the nearest dollar:

What the amount of revenue recognized using the percentage completion method for 2020 and 2021.

What the amount of gross profit for 2020 and 2021.

What the year-end balance of Construction Contract Asset (Liability) for 2020 and 2021.

What the year-end balance of Accounts Receivable for 2020 and 2021.

Reference no: EM133034759

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