Question

Hawk Construction, Inc. had a 3-year project whose contract price is $8,000,000. Construction activities are

summarized in the table below.

                                   12/31/17         12/31/18         12/31/19

Costs to date                                       2,000,000       5,000,000       9,000,000

Additional costs to complete             3,000,000       4,000,000        -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 2017, 2018, & 2019 using 1) the percentage of completion method, 2) the completed contract method.