Barnet Contractors signed a contract to construct a storage facility for MNP Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Barnet uses the completed-contract method to report its long-term contracts. Information related to this contract is summarized in the table below. (Click the icon to view the contract information.) BarnetContractors calculated the gross profit and net asset (liability) position under the percentage-of-completion method. (Click the icon to view the gross profit and net asset (liability) position under the percentage-of-completion method.) Read the requirements. Requirement a. Compute the gross profit and revenue to be recognized each year of the contract. Use the table below to calculate the gross profit and revenue to be recognized in each respective year. (Enter a "0" for any zero amounts.) Gross profit recognition 2022 2023 2024 Current year revenue Currrent year gross profit Requirement b. Prepare the journal entries required for each year of the contract. (Record debits first, then credits. Exclude explanations from journal e (a) Begin by recording the construction costs in 2022, if required. Account 2022 (a) (b) Next record the progress billings in 2022, if required. Account 2022 (b) (c) Now record the cash collections in 2022, if required. Account 2022 (c) Data table - $ 2,690,000 Contract price 2022 2023 2024 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs $ 1,200,000 $ 0 Progress billings made during the year Cash collections during the year 430,400 $ 609,600 1,200,000 1,630,400 1,200,000 1,630,400 2,240,000 675,000 407,600 1,875,000 2,038,000 2,240,000 975,000 1,138,000 577,000 775,000 1,238,000 0 677,000 Reference - 2022 2023 2024 Construction in Progress $ Billings on Construction in Progress Net Asset (Liability) 1,721,600 $ 2,152,000 $ (975,000) (2,113,000) 0 0 $ 746,600 $ 39,000 $ $ 521,600 $ 0 $ (71,600) Gross profit recognized in the current year Print Done Barnet Contractors signed a contract to construct a storage facility for MNP Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Barnet uses the completed-contract method to report its long-term contracts. Information related to this contract is summarized in the table below. (Click the icon to view the contract information.) BarnetContractors calculated the gross profit and net asset (liability) position under the percentage-of-completion method. (Click the icon to view the gross profit and net asset (liability) position under the percentage-of-completion method.) Read the requirements. (d) Next record the gross profit in 2022, if required. Account 2022 (d) Data table - $ 2,690,000 Contract price 2022 2023 2024 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs $ 1,200,000 $ 0 Progress billings made during the year 430,400 $ 609,600 1,200,000 1,630,400 1,200,000 1,630,400 2,240,000 675,000 407,600 1,875,000 2,038,000 2,240,000 975,000 1,138,000 577,000 775,000 1,238,000 0 677,000 (e) Now we will record the entries for 2023. Record the construction costs in 2023, if required. Account 2023 (e) Cash collections during the year (f) Next record the progress billings in 2023, if required. Account (g) Now record the cash collections in 2023, if required. Account Reference - 2022 2023 2024 2023 (f) Construction in Progress $ Billings on Construction in Progress Net Asset (Liability) 1,721,600 $ 2,152,000 $ (975,000) (2,113,000) 0 0 $ 746,600 $ 39,000 $ 2023 (g) $ 521,600 $ 0 $ (71,600) Gross profit recognized in the current year Print Done Barnet Contractors signed a contract to construct a storage facility for MNP Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Barnet uses the completed-contract method to report its long-term contracts. Information related to this contract is summarized in the table below. (Click the icon to view the contract information.) BarnetContractors calculated the gross profit and net asset (liability) position under the percentage-of-completion method. (Click the icon to view the gross profit and net asset (liability) position under the percentage-of-completion method.) Read the requirements. (h) Next record the gross profit in 2023, if required. Account 2023 (h) Data table - $ 2,690,000 Contract price 2022 2023 2024 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs $ 1,200,000 $ 0 Progress billings made during the year 430,400 $ 609,600 1,200,000 1,630,400 1,200,000 1,630,400 2,240,000 675,000 407,600 1,875,000 2,038,000 2,240,000 975,000 1,138,000 577,000 775,000 1,238,000 0 677,000 (i) Now we will record the entries for 2024. Record the construction costs in 2024, if required. Account 2024 (i) Cash collections during the year (j) Next record the progress billings in 2024, if required. Account (k) Now record the cash collections in 2024, if required. Account 2024 (j) 2024 (k) Reference - 2022 2023 2024 Construction in Progress $ Billings on Construction in Progress Net Asset (Liability) 1,721,600 $ 2,152,000 $ (975,000) (2,113,000) 0 0 $ 746,600 $ 39,000 $ $ 521,600 $ 0 $ (71,600) Gross profit recognized in the current year Print Done | Barnet Contractors signed a contract to construct a storage facility for MNP Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Barnet uses the completed-contract method to report its long-term contracts. Information related to this contract is summarized in the table below. (Click the icon to view the contract information.) BarnetContractors calculated the gross profit and net asset (liability) position under the percentage-of-completion method. (Click the icon to view the gross profit and net asset (liability) position under the percentage-of-completion method.) Read the requirements. (I) Next record the gross profit in 2024, if required. Account 2024 (1) (m) Finally record the entry to close the completed contract in 2024, if required. Account 2024 (m) Requirementa Prepare the taccounts for construction in progress billinge en construction in progress and accounts receivable Data table - $ 2,690,000 Contract price 2022 2023 2024 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete $ 1,200,000 $ 0 Estimated total costs Progress billings made during the year Cash collections during the year 430,400 $ 609,600 1,200,000 1,630,400 1,200,000 1,630,400 2,240,000 675,000 407,600 1,875,000 2,038,000 2,240,000 975,000 1,138,000 577,000 775,000 1,238,000 0 677,000 Reference - 2022 2023 2024 Construction in Progress $ Billings on Construction in Progress 1,721,600 $ 2,152,000 $ (975,000) (2,113,000) 0 0 $ 746,600 $ 39,000 $ Net Asset (Liability) $ 521,600 $ 0 $ (71,600) Gross profit recognized in the current year Print Done lance row in the t-account.) Barnet Contractors signed a contract to construct a storage facility for MNP Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Barnet uses the completed-contract method to report its long-term contracts. Information related to this contract is summarized in the table below. (Click the icon to view the contract information.) BarnetContractors calculated the gross profit and net asset (liability) position under the percentage-of-completion method. (Click the icon to view the gross profit and net asset (liability) position under the percentage-of-completion method.) Read the requirements. Data table Requirement c. Prepare the t-accounts for construction in progress, billings on construction in progress, and accounts receivable. (For accounts with a Review the journal entries made above. Contract price Construction in Progress Billings on Construction in Progress 2022 Balance 2022 Balance 2023 Balance 2023 Balance 2024 Balance Final Balance 2022 Balance 2023 Balance 2024 Balance Accounts Receivable 2024 Balance Final Balance Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs Progress billings made during the year Cash collections during the year Reference - $ 2,690,000 2022 2023 2024 $ 1,200,000 $ 0 430,400 $ 609,600 1,200,000 1,630,400 1,200,000 1,630,400 2,240,000 675,000 407,600 1,875,000 2,038,000 2,240,000 975,000 1,138,000 775,000 1,238,000 0 577,000 677,000 - 2022 2023 2024 Construction in Progress 1,721,600 $ 2,152,000 $ (975,000) Billings on Construction in Progress $ 746,600 $ (2,113,000) 39,000 $ 0 Net Asset (Liability) 521,600 $ 0 $ (71,600) Gross profit recognized in the current year Print Done alance row in the t-account.) Barnet Contractors signed a contract to construct a storage facility for MNP Manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Barnet uses the completed-contract method to report its long-term contracts. Information related to this contract is summarized in the table below. (Click the icon to view the contract information.) BarnetContractors calculated the gross profit and net asset (liability) position under the percentage-of-completion method. (Click the icon to view the gross profit and net asset (liability) position under the percentage-of-completion method.) Read the requirements. 2024 Balance Data table Contract price Final Balance Requirement d. Determine the net asset (liability) for each year of the contract on December 31. (Use parentheses or a minus sign for a net liability. If the net amount is "0", enter a 0 i Construction in Progress (Right to Bill) Billings on Construction in Progress (Obligation to Perform) Net Asset (Liability) 2022 2023 2024 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs Progress billings made during the year Cash collections during the year Requirement e. Compare the reported gross profit and net asset (liability) position reported under the percentage-of-completion method and the completed-contract method. Compare the reported gross profit under the percentage-of-completion method and the completed-contract method. (Enter "0" for any zero amounts. Use parentheses or a minus sign Review the journal entries made above. Percentage-of- Completed Completion Contract Gross Profit Recognized - 2022 Gross Profit Recognized - 2023 Gross Profit Recognized - 2024 Total Gross Profit Recognized Compare the net asset (liability) position reported under the percentage-of-completion method and the completed-contract method. (Enter "0" for any zero amounts. Use parentheses or a Net Asset (Liability) - 2022 Net Asset (Liability) - 2023 Net Asset (Liability) - 2024 Percentage-of- Completion Completed Contract Difference Reference - $ 2,690,000 2022 2023 2024 $ 1,200,000 $ 0 430,400 $ 609,600 1,200,000 1,200,000 1,630,400 2,240,000 675,000 407,600 1,875,000 2,038,000 2,240,000 975,000 1,138,000 775,000 1,238,000 1,630,400 0 577,000 677,000 - 2022 2023 2024 Construction in Progress $ Billings on Construction in Progress Net Asset (Liability) $ 1,721,600 $ 2,152,000 $ (975,000) (2,113,000) 746,600 $ 0 39,000 $ 0 $ 521,600 $ 0 $ (71,600) Gross profit recognized in the current year Print Done