Aylmer Inc signed a 3-year contract to construct a new school on January 1, 2022 for $30,550,000 Construction began in 2022. Aylmer has a December 31 year end. Data relating to the construction project is below:

                                                                       2022               2023                2024
Costs to date                                            7,895,000      16,345,000       24,000,000
Estimated costs to complete                 16,500,000      7,655,000               0
Progress billings during the period       9,041,000      10,125,000       11,384,000
Cash receipts during the period             8,565,000       10,485,000       11,500,000

1. Prepare ALL the appropriate journal entries for 2022 assuming Aylmer uses the percentage-of-completion method.

2. For 2022, complete the partial income statements (up to gross profit only) for: 

a. The percentage-of-completion method. 

b. The completed contract method.

3. For 2022, under the percentage-of-completion method, what is the balance in accounts receivable?

4. For 2023, under the percentage-of-completion method, how much revenue should be recognized? 

Answer rating: 100% (QA)

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