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Manchester Victorian construction Inco. Signed a new contract on the 10th of May, 2020. The...

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Accounting

Manchester Victorian construction Inco. Signed a new contract on the 10th of May, 2020. The contracted is assigned with a price of 8.4 million and the company expects that it will take approximately 3 to 4 years to complete the project. The following are the related cost, billing and collection over years 2020-2023:

2020

2021

2022

2023

Cost during the year

$1,100,000

$2,570,000

$3,162,000

$1,388,000

Cost to complete

$5,100,000

$3,750,000

$1,728,000

-

Billing During the year

$1,000,000

$2,000,000

$4,000,000

$1,500,000

Collection during the year

$800,000

$1,750,000

$3,000,000

$2,950,000

You are required to calculate the revenues, construction expense, accumulated cost and gross profit for each year under both methods:

Percent of completion method

2020

2021

2022

2023

Revenues

Construction expense

Gross profit or loss

Accumulated actual cost

Zero profit method

2020

2021

2022

2023

Revenues

Construction expense

Gross profit or loss

Accumulated actual cost

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