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V - Revenue Recognitio nts tion Accounting Rapid Construction uses the percentage-of-completion method of accounting. During 2017, Rapid Construction started work on a $1,620,000 construction contract, which it plans to complete in 36. 2019. The following information was taken from Rapid Construction's accounting records: 2017 $430,000 2018 Costs incurred to date Estimated costs to complete 2019 $1,0 70,000 Total estimated costs at year-end Billings to date Collections to date 1.000 1,000 895,000 807,000 272.000 1433,000 a) Prepare the journal entry to record revenue, expense and gress profit (loss) that Rapid Construction will reeognize on this contract for the year ended 12/31/17 using the percee of-completion method. b) Prepare the December 31, 2017 balance sheet disclosure of construction in process and related billings Be sure to indicate whether the amount is an asset or a liability 17 struction Accounting (continue) ) Prepare the journal entry to record revenue, expense and gross profit (los) that Rapid Construction will recognize on this contract for the year ended 12/31/18 using the percentage- of-completion method. d) Prepare the journal entry to record revenue, expense and gross profit (loss) that Rapid Construction will recognize on this contract for the year ended 12/31/19 using the percentage- of-completion method. Compute the amount of gross profit to be recognized each year, assuming Rapid Construction uses the completed-contract method. e) 2017 2018 2019 Gross Profit 19

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