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.

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Definitions:

Reagan Administration's Foreign Policy

The foreign policy strategy of the United States during Ronald Reagan's presidency (1981-1989), characterized by a strong anti-Communist stance and efforts to reduce Cold War tensions.

Domestic Consequences

The internal effects or outcomes within a country as a result of its policies, actions, or events, including social, economic, and political impact.

Disintegration of the Soviet Union

The process that led to the dissolution of the Soviet Union in 1991, resulting in the independence of its 15 republics.

End of the Cold War

The period from the late 1980s through the early 1990s marked by a thaw in relations between the Soviet Union and the United States, leading to the eventual dissolution of the Soviet Union in 1991.