Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2017, Hamilton began work under a non-cancellable contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow:

Instructions
(a) How much revenue should be recognized in 2017? In 2018?
(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, how much revenue should be recognized in 2018?
(c) Prepare a complete set of journal entries for 2017 (using the percentage-of-completion method).

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2018 $1,425,000 2017 $640,000 Costs incurred during the year Estimated costs to complete, as at December 31 Billings during the year (non-refundable) Collections during the year 960,000 420,000 350,000 1,680,000 1,500,000