Extracted text: Annotatior The Kirby Construction Company was the low bidder on a specialized equipment contract. The contract bid was $5,400,000 with an estimated cost to complete the project of $4,800,000. The contract period was 34 months , beginning March 1, 2014. The company uses the cost-to-cost method to estimate profits. A record of construction activities for the years 2014โ 2017 follows: Actual Cost- Cash Progress Billings Year Current Year Receipts 2014 $2,800,000 $2,600,000 $2,200,000 2015 2,200,000 2,100,000 1,900,000 2016 600,000 700,000 700,000 2017 600,000 The estimated cost to complete the contract at the end of each accounting period is: 2014 $2,200,000 Novt
Extracted text: 2014 $2,200,000 2015 500,000 2016 Instructions: 1. What are the revenue, cost, and gross profit recognized for each of the years 2014-2016 under the percentage-of-completion method? (Note: Round percentage to two decimal places for percentage completed.) 2. Give the journal entries for each of the years 2014-2016 to record the information from (1). 3. Give the journal entries in 2017 to record any collections and to close out all construction accounts.