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XYZ Construction Company is using the percentage$-$of$-$completion method of accounting for long$-$term contracts in the company's financial statements. You have been engaged to assist XYZ$\text{'}$s controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information:

XYZ commenced doing business on January $1,2015.$

Construction activities for the year ended December $31,2015,$ were as follows:

Each contract is with a different customer.

Any work remaining to be done on the contracts is expected to be completed in $2016.$

Required:

$($a$)$ Prepare a schedule by project, computing the amount of income $($or loss$)$ before selling, general, and administrative expenses for the year ended December $31,2015,$ which would be reported under the percentage$-$of$-$completion method $($based on estimated costs$).$

$($b$)$ Prepare the general journal entry$($ies$)$ to record revenue and gross profit on project Beta $($second project$)$ for $2015,$ assuming that the percentage$-$of$-$completion method is used.

$($c$)$ Indicate the balances that would appear in the statement of financial position at December $31,2015$ for the following accounts for Project Delta $($fourth project$),$ assuming that the percentage$-$ofcompletion method is used.

Accounts Receivable

Billings on Construction in Process

Construction in Process

PLEASE SEE THE PICTURE becuase not every thing is written in corect way here.

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