Jones Contractors Inc. agreed to construct a building for 5300,000. Construction commenced in 2011 and was completed in 2013. Data relating to the contract are summarized below:

Required:
a. For each of the three years, determine the following amounts relating to the above contract: revenue, expenses, gross profit, accounts receivable balance, and construction- in-process inventory balance.
b. Record the journal entries using T-accounts.

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2011 S 80,000 158,000 65,000 60,000 2012 $120,000 39,000 130,000 128,000 2013 Cost incurred during year Estimated costs to complete Billings during year Collections during year Estimated profit on contraet S 50,000 105,000 112,000