Prepare all journal entries necessary to reflect the use of the percentage-of-completion method in 2018 for CCC in BE8-18.

Data from BE8-18

Computer Consultants (CCC) signed a contract in 2018 to develop a computer network system for Platinum Entertainment. Cosmo uses the percentage-of completion method and determines its measure of progress using the cost-to-cost approach. The firm provided the following information for 2018.

Contract price ..........................................................................    $85,000

                                                                                                             2018

Actual construction costs incurred during the year ..........    $12,000

Estimated total costs .............................................................      60,000

Progress billings made during the year ..............................      30,500

Cash collections during the year .........................................       25,000