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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...

16. 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 2011, assuming the firm uses the percentage of completion method:
17.   (4 points) Kamus Medical Center uses the cost recovery method of accounting for recognizing revenue. The following information is available:
                   2011 2012      2013  
Sales ................... $45,000 $60,000 $85,000
Gross profit percentage . 37% 41% 40%
Cash collections:
   2011 ................. $24,000 $19,000 $ 2,000
   2012 ................. 40,000 17,000
   2013 ................. 53,000
Determine the amount of gross profit to be recognized for 2011 and 2012

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