Contract-Based Approach
in January 2020, Bruins Construction Corp $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline{2020}\quad\quad\quad\quad\underline{2021}$ $\text{Costs incurred}\ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots\ldots\$2,430,000\quad\$2,270,000$

question 13

Essay

Contract-based approach
In January 2020, Bruins Construction Corp. contracted to construct a building for $ 6,000,000. Construction started in early 2020 and was completed in 2021. The following additional information is available:
$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline{2020}\quad\quad\quad\quad\underline{2021}$
$\text{Costs incurred}\ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots\ldots\$2,430,000\quad\$2,270,000$
$\text{Estimated costs to complete}\ldots \ldots \ldots \ldots\ldots2,600,000 \quad -$
$\text{Collections during the year}\ldots \ldots \ldots \ldots \ldots \ldots2,400,000\quad3,600,000$ Bruins uses the percentage-of-completion method.
Instructions
Under the contract-based approach,
a) How much revenue should Bruins report for 2020 and 2021?
b) Prepare all journal entries for 2020 and 2021 for this contract.