Question: Question 5 (8 points) Q.9 (8 points) On 1/1/2019, the Manhattan Construction Company entered in a contract with New York City to build a

Question 5 (8 points) Q.9 (8 points) On 1/1/2019, the Manhattan Construction Company entered in a contract with New York City to build a municipal building with contract price of $8,000,000 which is expected to be completed at end of 2021. The following is summary information of this contract: Costs made this year 2019 $2,000,000 Estimated costs to $4,000,000 complete Billings $1,500,000 Cash collected 2,000,000 2020 $3,000,000 $2,000,000 $2,500,000 1,000,000 2021 $1,000,000 10 $4,000,000 5,000,000 (Manhattan recognizes revenue over time (i.e., the Percentage of Completion method) Required: A. Determine the gross profit realized in 2019 and 2020. B. Make the necessary journal entry to recognize revenue and costs for 2019.

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