Acc280 Financial Accounting: On July 1, 2007, South Garden Construction Company Inc

Acc280 Financial Accounting
On July 1, 2007, South Garden Construction Company Inc. contracted to build an office building for Mintau Corp. for a total contract price of $1,975,000. On July 1, South Garden estimated that it would take between 2 and 3 years to complete the building. On December 31, 2009, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Mintau for 2007, 2008, and 2009.
At 12/31/07 At 12/31/08 At 12/31/09
Construction costs to date 152,000 1,210,000 2,060,000
Estimated costs to complete the contract 1,360,000 815,000 -
Billings to Mintau 311,000 1,125,000 1,800,000

Instructions
a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2007, 2008, and 2009. (Ignore income taxes.)
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