^{Please work through the following questions using both completed contract method and percentage-of-completion method. Please prepare journal entries, t-accounts for CIP and Billings on CIP, and ending balance for B/S and I/S for the transactions given below.}

^{Ex1-1.a: We are building a Road. During 1995 we spent $800,000 on DM, DL, and OH. We billed the state $600,000 for the portion finished.We plan to spend $700,000 to finish the job during 1996. We plan to bill the state $1,650,000 in 1996.}

^{b. In 1996, actual costs are $750,000 and we expect to spend another $100,000 in 1997 to finish up. We bill $1,300,000 in 1996 and will bill $350,000 in 1997.}

^{c. For 1997, we spend $100,000 to finish up. We bill the remaining $350,000.}

CIP Billings on CIP B/S I/S 1995: 1996: 1 1997: CIP Billings on CIP B/S I/S 1995: 1996: 1 1997