Applejack Construction is contracted to build a freeway for $12,000,000 Construction began in 2020 and was completed in 2021 Data relating to the construction are shown below 2020 2021 Costs incurred during the year $ 3,500,000 00 $ 3,250,000 00 Estimated costs to complete $ 2,500,000 00 Using the percentage of completion method, answer the below questions 1 How much revenue should be reported for 2020 Show your computation 2 Make the entry to record progress billings of $4,900,000 during 2020 3 Make the entry to record the revenue and gross profit for 2020 4 How much gross profit should be reported for 2021 Show your computation

Question: Applejack Construction is contracted to build a freeway for $12,000,000. Construction began in 2020 and was completed in 2021. Data relating to the construction are

Applejack Construction is contracted to build a freeway for $12,000,000. Construction began in 2020 and was completed in 2021. Data relating to the construction are shown below.

	2020	2021
Costs incurred during the year	$ 3,500,000.00	$ 3,250,000.00
Estimated costs to complete	$ 2,500,000.00

Using the percentage-of-completion method, answer the below questions.

1. How much revenue should be reported for 2020? Show your computation.

2. Make the entry to record progress billings of $4,900,000 during 2020.

3. Make the entry to record the revenue and gross profit for 2020.

4. How much gross profit should be reported for 2021? Show your computation.

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