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On Jan 1, 2019, alfaisal Builders, entered into a long-term contract with NEOM Development Company...

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Accounting

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On Jan 1, 2019, alfaisal Builders, entered into a long-term contract with NEOM Development Company to build a light rail that connects NEOM City with Tabuk City in northwestern of the Kingdom for $18 million. The project is expected to be completed in 2022 and it is estimated to cost $15 million. Alfaisal Builders use the percentage-of-completion method (cost to cost basis) to account for the project. The following data is taken from the book of Alfaisal Builders (the financial year ends at 31 Dec): 2021 2022 2020 Item 2019 10,790,000 16,600,000 8,000,000 $ 6,000,000 Costs to date 0 9,000,000 8,000,000 5,810,000, Estimated costs to complete 12,300,000 18,000,000 7,200,000 Progress billings to date 3,500,000 to 18,000,000 10,900,000 6,800,000 Cash collected date 3,200,000 Required: 1. What is the percent of completion at the end of years 2019, 2020 & 2021? 2. What is the gross profit (loss) at the end of 2019 and 2021? 3. What is the balance of the construction in process account at the end of 2020? 4. What is the balance of account receivable account at the end of 2021

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