Bernard Brothers Building (BBB) signed a contract for a fixed fee of $ 60,000 and used the completed- contract method to account for the contract. BBB provided the following information related to the contract.

Required
a. Prepare the journal entries required for each year of the contract.
b. Prepare the t- accounts for Construction in Progress, Billings on Construction in Progress, and Accounts Receivable.
c. Determine the net asset (liability) for each year of the contract on December 31.

Contract price $60,000 2015 $15,000 2016 2017 Actual construction costs incurred during the $20,000 S15,000 $35,000 35,000 $15,000 $50,000 $55,000 $23,000 $20,000 $20,000 $20,000 year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs Progress billings made during the year Cash collections during the year $15,000 S 5,000 $20,000 $25,000 $20,000 $55,000 $12,000