Question: On March 1, 2008, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $4,270,000,

On March 1, 2008, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $4,270,000, submitted by the Harper Construction Company. Harper was awarded the contract. Harper uses the completed contract method to report gross profit. The following data are given to summarize the activities on this contract for 2008 and 2009. Give the entries to record these transactions using the completed-contractmethod.

Cost Estimated Cost Billings on Collections of Year Incurred to Complete Contract Billings 2008 2009 $1,790,000 2,090,000 $1,050.000 3.220.000 $2.140,000 $1.750,000 2,520,000

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