Question: on june 1 2015, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $5,000,000,

on june 1 2015, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $5,000,000, submitted by the shannon Construction company. Shannon was awarded the contract. Shannon uses teh completed- contract method to report gross profit. The following data are given to summarize the activities on this contract for 2015 and 2016. Give the entriesto record these transactions using the completed- contract method.

Year Cost Incurred Estimated Cost to Complete Billing on Contract Collection of Billing

2015........................1,930,000 2,420,000 2,100,000 1,800,000

2016........................2,290,000 0 2,900,000 3,200,000

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