question edwards company contracted on 4 1 14 to construct a building for 2 400 000 4304523

Question

Edwards Company contracted on 4/1/14 to construct a building for$2,400,000. The project was completed in 2016. Additional datafollow: 2014 2015 2016 Costs incurred to date $ 560,000 $1,350,000$1,900,000 Estimated cost to complete 1,040,000 450,000 —Billingsto date 500,000 1,900,000 2,400,000 Collections to date400,000 1,300,000 2,200,000 Instructions (a) Calculate the incomerecognized by Edwards under the percentage-of-completion method ofaccounting in each of the years 2014, 2015, and 2016. (b) Prepareall necessary entries for the year 2015. (c) Present the balancesheet disclosures at December 31, 2015. Proper headings orsubheadings must be indicated.