In 2011, Fayette Engineering entered into an agreement to construct an office building at a contract price of $5,100,000. Construction data were as follows:
2011 2012 2013
Construction costs
incurred $ 750,000 $2,700,000 $ 630,000
Estimated costs to
complete 3,000,000 862,500 --
Progress billings 570,000 3,600,000 930,000
Collections from client 450,000 3,300,000 1,350,000
Prepare the necessary entries for 12/31 of 2011, 2012, and 2013 using the:
1. completed-contract method
2. percentage-of-completion method