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Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2024 and...

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Accounting

Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2024 and was completed in 2025. At the beginning of 2024, the estimated total construction cost is $6,000,000. Data relating to the construction are:
Dalton uses the percentage-of-completion method.
Instructions
(a) How much revenue should be reported for 2024? Show your computation (2 points).
(b) Prepare the entry to record construction costs of 2024(2 points).
(c) Prepare the entry to record progress billings of $4,100,000 during 2024(2 points).
(d) Prepare the entry to record the revenue and gross profit for 2024(3 points).
(e) Which account name should you report the difference between construction in process and billing for 2024? How much? (2 points)
(f) How much gross profit should be reported for 2025? Show your computation. (2 points)
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