Turner, Inc. began work on a $7,000,000 contract in 2010 to construct an office builidng. During 2010, Turner, Inc. incurred costs of $1,700,000, billed thier customers for $1,200,000, and collected $960,000. At December 31, 2010, the estimated future costs to complete the project total $3,300,000. Prepare Turner's 2010 journal entries using the percentage-of-completion method.
Construction in Process........................................................................1,700,000
Materials, Cash, Payables, etc....................................................1,700,000
Accounts Receivable............................................................................1,200,000
Billingson Construction in Process........................................... 1,200,000
Cash.......................................................................................960,000
Accounts Receivable..................................................................960,000
Construction in Process........................................................................680,000
[($1,700,000 ÷ 5,000,000) X$2,000,000]
Construction Expenses.........................................................................1,700,000
Revenue from Long-Term Contracts..........................................2,380,000
($7,000,000,000X 34%)