SHOW PROPER SOLUTION

The construction company entered into a 3-year contract to build a bridge. The required contract price is P5,600,00. The following cost data relate to the construction activities: 20x1 20x2 20x3 Cost to date P1,512,000 4,032,000 4,536,000 Estimated cost to 3,528,000 448,000 complete Progress billings 2,240,000 2,240,000 1,120,000 each year Collections of 1,960,000 2,240,000 1,400,000 billing each year The company uses cost to cost percentages in measuring progress to satisfying a performance obligation. Required: 1. Calculate revenue, cost and gross profit recognized each year-end 2. Determine the balance sheet presentation of this contract at end of 20x1 and 20x2 3. Prepare all journal entries each year