Question - On February 1, 2014, Miley Contractors agreed to construct a building at a contract price of $5,000,000. Miley estimated total construction costs would be $4,000,000 and the project would be finished in 2015. Information relating to the costs and billings for this contract is as follows:
|
2014
|
2015
|
2016
|
|
Total costs incurred to date
|
1,500,000
|
2,640,000
|
4,600,000
|
|
Estimated costs to complete
|
2,500,000
|
1,760,000
|
0
|
|
Customer billings to date
|
2,200,000
|
4,000,000
|
5,600,000
|
|
Collections to date
|
2,000,000
|
3,500,000
|
5,500,000
|
Complete journal entries for percentage of completion accounting for 2014, 2015, 2016.