Question: Problem 1 (18 Points) Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was

Problem 1 (18 Points)

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

2020 2021

Costs incurred during the year $ 450,000 $1,100,000

Estimated costs to complete 1,050,000 0

Billings during the year 400,000 1,400,000

Cash collections during the year 300,000 1,500,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:

1. Prepare all journal entries to record costs, billings, collections, and profit recognition for 2020

2. Prepare all journal entries to record costs, billings, collections, profit recognition and completion of the project for 2021

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