Question - ADH constructed a new subdivision during 2015 and 2016 under contract with Cactus Development Co. Data for 2015 are as follow:
Contract price: 3,000,000; Actual cost: $1,200,000; Estimated cost to complete: $800,000; Customer Billing: $1,000,000; Cash collected:$850,000.
Prepare all necessary journal entries including the revenue and gross profit recognized in 2015 for ADH.