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Problem 5: A $3,600,000 contract is executed to build a service station. Total estimated costs...

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Accounting

Problem 5: A $3,600,000 contract is executed to build a service station. Total estimated costs to complete the project are $2,340,000 million. The construction company incurred the following costs during the project: $936,000 in 2019; $234,000 in 2020; and $1,170,000 in 2021.

Required: a. Compute revenues, expenses, and income for each year 2019 through 2021 using the percentage-of-completion method.

b. Compute revenues, expenses, and income for each year 2019 through 2021 using the zero gross profit method.

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