Long-Term Contracts.Edwards Company contracted on 4/1/14 to construct a building for $2,400,000. The project was completed in 2016. Additional data follow: 
Instructions
(a) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2014, 2015, and 2016.
(b) Prepare all necessary entries for the year 2015.
(c) Present the balance sheet disclosures at December 31, 2015. Proper headings or subheadings must be indicated.
Definitions:
Cash Budget
A forecast of cash inflows and outflows over a certain period, used to manage the company's cash balance and ensure liquidity.
Sales Clerk
An employee who handles the exchange of goods for payment, typically in a retail setting, assisting customers in finding products and completing purchases.
Daily Sales
The total revenue generated from goods or services sold by a company during a single day.
Static Budget
A fixed budget that does not change with actual activity levels, designed for planning purposes.
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