Hardhat Construction Company has a contract to construct a bridge for $21 million. The following data pertain to the construction period:

	2016	2017	2018
Costs incurred during the ear	6,000,000	10,000,000	5,500,000
Estimated costs to complete	12,000,000	4,000,000	0
Percentage of completion	33.33%	80%	100%
Billings during the year	6,500,000	9,000,000	5,500,000
Collections during the ear	5,500,000	9,500,000	6,000,000

Part 1. Assuming Hardhat uses the percentage of completion method, indicate the revenue and gross profit (or loss) it would recognize for 2016 and 2017.

2016 Revenue	2016 gross profit (or loss)	2017 revenue		2017 gross profit (or loss)

Show your work.

Part 2: Assuming Hardhat uses the percentage of completion method, prepare a partial balance sheet for all accounts related to this contract as of December 31 , 2017.