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R$.$ Wayne Computer Consultants, Corp. develops and installs integrated computer systems and networks for large utilities. On January $2,2022,$ the company signed a contract to deliver an electricity deployment system for a grid covering three New England States. The contract paid R$.$ Wayne is a fixed fee of $$18,000,000.$ Wayne Computer Consultants uses the percentage$-$of$-$completion method $($cost$-$to$-$cost approach$)$ to report its long$-$term contracts. Other relevant information related to the contract is presented in the following table.

Contract price: $$18,000,000$

$2022$

$2023$

$2024$

Actual construction costs incurred during the year

$ $4,500,000$

$ $6,000,000$

$ $5,000,000$

Construction costs incurred in prior years

$0$

$ $4,500,000$

$ $10,500,000$

Estimated costs to complete

$ $10,500,000$

$ $2,625,000$

$0$

Estimated total costs

$ $15,000,000$

$ $13,125,000$

$ $15,500,000$

Progress billings made during the year

$ $6,600,000$

$ $8,400,000$

$ $3,000,000$

Cash collections during the year

$ $6,000,000$

$ $6,000,000$

$ $6,000,000$

Required:

Compute the gross profit and revenue to be recognized each year of the contract.

Prepare the journal entries required for each year of the contract.

Prepare the t$-$accounts for construction in progress $($CIP$),$ billings on construction in progress, and accounts receivable.

Determine the net asset $($liability$)$ for each year of the contract on December $31.$

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