Question: On January 1, 2020, Reds Construction Ltd. started a construction project for $ 5,000,000. Relevant data for 2020 and 2021 are as follows: 2020 2021

On January 1, 2020, Reds Construction Ltd. started a construction project for $ 5,000,000. Relevant data for 2020 and 2021 are as follows: 2020 2021 Current year construction costs $ 3,600,000 $ 365,000 Estimated remaining costs to complete350,000 -0- Current year billings 3,500,000 1,500,000 Current year collections 2,800,000 1,700,000 Instructions Calculate the following amounts using the percentage of completion method. Please round all your answers to the nearest dollar: The amount of revenue recognized using the percentage completion method for 2020 and 2021. (3 marks) The amount of gross profit for 2020 and 2021. (4 marks) The year-end balance of Construction Contract Asset (Liability) for 2020 and 2021. (3 marks) The year-end balance of Accounts Receivable for 2020 and 2021. (2 marks)

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