Question $2$ of $3$

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$\frac{8\mathrm{.}89}{20}$

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Inexperienced construction company Concord Corp. signed a risky non$-$cancellable contract to build a research facility at a fixed contract amount of $$2,200,000.$ The work began in early $2020$ and Concord incurred costs of $$990,000.$ At December $31,2020,$ the estimated future costs to complete the project totalled $$990,000.$ During $2021,$ Concord ran into trouble with weather conditions and incurred the expected costs of $$990,000$ and estimated that it would need to spend an additional $$365,000$ to complete the project. During $2022,$ Concord reluctantly completed the project, incurring further costs of $$390,000.$

Calculate the amount of gross profit or loss that should be recognized each year under the percentage$-$of$-$completion method. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round percent complete to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

$\backslash$table$[[,$December $31,2020,$December $31,2021,$December $31,2022],[$Gross profit $/($loss$),$$$,110000,$$$,$$$]]$

Prepare the December $31,2021$ year$-$end journal entry to record costs, revenues, expenses, and losses from the contract. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round percent complete to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Date

December $31,$

$2021$

Construction Expenses

Contract Asset$/$Liability

Revenue from Long$-$Term Contracts

Account Titles and Explanation

Debit

Credit

$$

$$

$$

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Assistance UsedQuestion $2$ of $3$

$\frac{8\mathrm{.}89}{20}$

Current Attempt in Progress

Your answer is partially correct.

Inexperienced construction company Concord Corp. signed a risky non$-$cancellable contract to build a research facility at a fixed contract amount of $$2,200,000.$ The work began in early $2020$ and Concord incurred costs of $$990,000.$ At December $31,2020,$ the estimated future costs to complete the project totalled $$990,000.$ During $2021,$ Concord ran into trouble with weather conditions and incurred the expected costs of $$990,000$ and estimated that it would need to spend an additional $$365,000$ to complete the project. During $2022,$ Concord reluctantly completed the project, incurring further costs of $$390,000.$

Calculate the amount of gross profit or loss that should be recognized each year under the percentage$-$of$-$completion method. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round percent complete to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

$\backslash$table$[[,$December $31,2020,$December $31,2021,$December $31,2022],[$Gross profit$/($loss$),$$$,$$$,$$