Van Horn Construction Corp. uses the percentage-of-completion method of accounting. In 2014, Van Horn began work under contract #SG-OO1, which provided for a contract price of $5.2 million. Other details follow:

Instructions
Under the earnings approach:
(a) What portion of the total contract price would be recognized as revenue in 2014? In 2015?
(b) Assuming the same facts as those above except that the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2015?
(c) Prepare a complete set of journal entries for 2014 and 2015 under the percentage-of-completion method, including the entries for closing the contract.
(d) Prepare a complete set of journal entries for 2014 and 2015 under the completed-contract method.

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Costs incurred during the year Estimated cests to complete, as at December 31 Billings during the year Collections during the year 2014 $1,750,000 1,050,000 3,420,000 3,350,000 2015 $1,315,000 1,780,000 1,850,000