Repeat the requirements of P8- 8 assuming Wayne Computer Consultants uses the completed- contract method to report its long- term contracts.
In p8-8

Required
a. Compute the gross profit and revenue to be recognized each year of the contract.
b. Prepare the journal entries required for each year of the contract.
c. Prepare the t- accounts for Construction in Progress, Billings on Construction in Progress, and Accounts Receivable.
d. Determine the net asset (liability) for each year of the contract on December 31.

Contract price $18,000,000 2015 2016 Actual construction costs incurred during the year Construction costs incurred in prior years Estimated costs to complete Estimated total costs 2017 5,000,000 $ 10,500,000 S 4,500,000 $ 6,000,000 0 4,500,000 $10,500,000 2,625,000 $15,000,000 $13,125,000 $15,500,000 Progress bilings made during the yr 6,600,000 Cash collections during the year 8,400000 3,000,000 6,000,000 S 6,000,000 $ 6,000,000