3. ASU Construction Company has a contract to construct a $2,500,000 stadium at an estimated cost of $2,125,000. The contract starts in 2018, and the stadium is to be completed in 2020. By the end of 2019, ASU has revised the estimated total cost from $2,125,000 to $2,175,000. Complete the following tables using percentage-of-completion method (cost-to-cost basis). (41 points) Costs to date Estimated additional costs to complete Progress billings during the year Cash collected during the year How much cost was incurred in 2019? $ How much cost was incurred in 2020? $ $ $ $ Contract price Less Estimated total costs Estimated total gross profit Percent complete Revenue recognized in: Gross profit recognized in: =$ $ $ $ $ $ 2018 637.500 $ 1,537,500 750,000 675,000 2,500,000 $ 2018 $ Page 2 of 7 $ 2018 2 500 000 S S 2019 1,631,250 $ 543,750 1,125,000 1,080,000 2,500,000 $ 2019 2,500,000 X & 2019 $ S S $ 2020 2,175,000 625,000 745,000 2,500,000 2020 2,500,000 X % 2020

also prepare journal entires for 2018,2019&2020

3. ASU Construction Company has a contract to construct a $2,500,000 stadium at an estimated cost of $2,125,000. The contract starts in 2018 , and the stadium is to be completed in 2020. By the end of 2019, ASU has revised the estimated total cost from $2,125,000 to $2,175,000. Complete the following tables using percentage-of-completion method (cost-to-cost basis). (41 points) How much cost was incurred in 2019 ? How much cost was incurred in 2020 ? $+$=5 Contract price Less Estimated total costs Estimated tocal gross profit Percent complete Revenue recognized in: Gross profit recogaized in: 2018 2019 2020 Prepare journal entries for the following years. You may do this on the next page. (26 points) 2018