Edwards company contracted on 4/1/2012 to construct a building for $2,300,000. The project was completed in 2014. Additional data follow:
2012 2013 2014
Costs incurred to date 560,000 1,350,000 1,900,000
Estimated cost to complete 1,040,000 450,000 ----
Billings to date 500,000 1,800,000 2,300,000
Collections to date 400,000 1,300,000 2,200,000
A) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2012, 2013, 2014
B) Prepare all necessary entries for the year 2013
C) Present the balance sheet disclosures at December 31, 2013. Proper headings of subheadings must be indicated.