A B 1 Problem #2 Revenue Recognition (40 points) 2 3 During 2020, Austin Rockets began construction on a new aircraft hanger for the City of Dallas. 4 The job will be completed in 2023. The total contract price was: $22,500 5 6 2020 2021 2022 Cash collected during the year 4,500 6,200 7,000 8 Billings issued during the year 6,000 6,800 7,500 9 0 Actual costs incurred during the year 7,000 7,600 4,500 1 Cumulative costs incurred 2 Estimated remaining costs 13,500 10,800 4,500 3 Estimated total costs at completion 4 5 3 Part 1: Assuming revenue recognition over time using percentage of completion, provide the income statement for all three years. Revenue Expense Profit (Loss) Part 2: Prepare the balance sheet for 2021 (year two). 2020 2021 2022