Chicago Contractors got $5,400,000 contract to construct a school building for the city of Chicago. Work on this contract began in 2013 and the financial data pertaining to this contract is available here.
Cost incurred till Dec 21 2013........................................$1,080,000
Billings made to City...................................................$1,000,000
Amount collected from City.............................................$750,000
The estimated future cost to complete this contract is.............$3,240,000
a. Prepare Chicago Contractors 2013 Journal entries using percent of completion method
b. Show how the contract accounts will appear in the balance sheet of Chicago contractors on 12/21/2013