Question: On June 1, 2011, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $5,130,000,

On June 1, 2011, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $5,130,000, submitted by the Shannon Construction Company. Shannon was awarded the contract. Shannon uses the completed-contract method to report gross profit. The following data are given to summarize the activities on this contract for 2011 and 2012. Give the entries to record these transactions using the completed-contractmethod.

Estimated Cost to Complete Billings on Contract Collections of Billings Year 2011 2012 Cost Incurred $1.930,000 2.290,000 $2,100,000 3.030,000 $2,420,000 $1,800,000 3,330,000

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