***use the completed contract method***

1) show the work for all 3 years

2) journal entries for all 3 years

Curtiss Construction Company entered into a fixed price contract with Axelrod on 7/1/X1 to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract was for $4,000. Curtiss concludes that the contract does not qualify for revenue recognition over time and therefore, uses the completed contract method. The building was completed on 12/31/X3. The following information was found in Curtiss' books at the end of each year: (in 000) Cost incurred to date Est. cost to complete Billings 12/31/X1 $ 350 3,150 720 12/31/X2 S 2,500 1,700 2,170 12/31/X3 $ 4,250 -0- 1,110 Prepare the entries for 20X1, 20X2, and 20x3 (note: cach journal page is for a separate year and titled - use them accordingly! Instead of using dates, indicate each entry by a letter, A, B, C, etc. just as shown in class. Disregard cash collected journal entries