Percentage-Of-Completion Method Oilers Construction Was Awarded a Contract to Construct an Interchange

Percentage-of-completion method
Oilers Construction was awarded a contract to construct an interchange at the junction of two major freeways in a Canadian city at a total contract price of $ 10,000,000. The estimated total costs to complete the project were $ 8,000,000, and it is expected to take two years.
Instructions
Using the percentage-of-completion method and the cost-to-cost basis,
a) Prepare the journal entry to record construction costs of $ 4,400,000 for the first year.
b) Prepare the journal entry to record progress billings of $ 5,000,000 for the first year.
c) Prepare the journal entry to recognize the revenue and gross profit for the first year.

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