Question: During 2018 ESAU Construction began work on a project 2018-03B for a contract price of $12.8m. ESAU incurred costs of $4m in 2018 and estimated

During 2018 ESAU Construction began work on a project 2018-03B for a contract price of $12.8m. ESAU incurred costs of $4m in 2018 and estimated at the end of the year that the remaining costs to complete the job would be $5.5m. During 2019 the company expended $3.0m and at year-end estimated that an additional $3.5m of costs would be incurred in 2020 to finish the project.

Assuming that ESAU books $3.0m of expenses for this project in 2019, provide the journal entry to recognize revenue in 2019 using the percentage of completion method.

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