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
|
8,000,000
|
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.