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(B) Record journal entries for Allen Construction for this contract over the years 2019-2021 Problem...

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(B) Record journal entries for Allen Construction for this contract over the years 2019-2021 Problem 4: Allen Construction was awarded a contract to build a new office tower on January 1,2019. At the time, Allen's best estimate of total costs to construct the building was $20 million. The total revenues on the project were $22 million. The following information details events related to the contract over 2019, 2020, and 2021 (Note: costs are annual not cumulative): 2019 2020 2021 Account Dr Cr Dr Cr Dr Cr Fiscal Year Ended Annual Costs Incurred During Year 3,600,000 Estimated Costs to Complete Annual Billings Annual Cash Received December 31,2019 16,400,000 4,000,000 2,800,000 December 31,2020 7,300,000 10,000,000 9,725,000 7,675,000 9,100,000 10,100,000 December 31, 2021 0 8,000,000 (A) Assume that Allen Corporation uses the percentage of completion method to account for long-term contracts, calculate the revenue recognized in 2019, 2020, and 2021 (C) Assume Allen Construction used the completed-contract method. Record the necessary journal entries for gross profit over the years 2019-2021. You do not need to record the other entries 2019 2020 2021 Account Dr Cr Dr Cr Dr Cr

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