accounting-Chicago contractors got $7,000,000 contract to construct a school building

QUESTION

Chicago contractors got $7,000,000 contract to construct a school building for the City of Chicago. Work on this contract began in 2013 and the financial data pertaining to this contract is available here.Cost incurred till Dec.31, 2013 $1,400,000Billings made to City $2,000,000Amount collected from City $ 1,500,000The estimated future cost to complete this contract is $4,200,000.(a) Prepare Chicago contractors 2013 journal entries using percentage of completion method.(b) Show how the contract accounts will appear in the Balance Sheet of Chicago Contractors on 12/31/2013

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