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Larkspur Construction Company uses the percentage-of-completion method of accounting. In 2020, Larkspur began work under contract #E2-D2, which provided for a contract price of $2,197,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2020 2021 $646,570 $1,441,000 930,430 419,000 2,197,000 352,000 1,480,000 Your answer is incorrect. What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ Your answer is incorrect. Assuming the same facts as those above except that Larkspur uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2021? Revenue recognized in 2021 $ 900770 e Textbook and Media List of Accounts Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. For costs incurred use account Materials, Cash, Payables.) Credit Debit 646750 Account Titles and Explanation Construction in Process I Cash (To record cost of of construction.) Accounts Receivable 646750 419000 Billings on Construction in Process (To record progress billings.) Cash Accounts Receivable 352000 (To record collections.) Construction in Process 254200 Construction Expenses 646570 Sales Revenue 900770 To recognize revenue.)

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