Che Star Construction Corp. has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,850,000. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20x5 and 20X6. In 20X7, actual costs exceeded estimated costs by $150,000. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 $2,700,000 $4,500,000 $1,800,000 Billings each year were as follows: 20x5 20X6 20X7 $2,300,000 $4,900,000 $3,750,000 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Gene Dentit Prey 3 of 3 Help Save ch 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 20x7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet 1 2 3 4 Record the costs of construction. Note: Enter debits before credits Debit Credit General Journal Date 3 of 3 THE 3. Prepare the journal entries for revenue recognition for each year and for contract completion in 2007, if the customer did not take control of the asset until the building was fully constructed and title transferred. (If no entry is required for a transaction/event, sele- "No journal entry required in the first account field. Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet 2 Record the costs of construction. Note: Enter debits before credits Debit Credit General Journal Date 20X5 Che Star Construction Corp. has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,850,000. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20x5 and 20X6. In 20X7, actual costs exceeded estimated costs by $150,000. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 $2,700,000 $4,500,000 $1,800,000 Billings each year were as follows: 20x5 20X6 20X7 $2,300,000 $4,900,000 $3,750,000 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Gene Dentit Prey 3 of 3 Help Save ch 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 20x7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet 1 2 3 4 Record the costs of construction. Note: Enter debits before credits Debit Credit General Journal Date 3 of 3 THE 3. Prepare the journal entries for revenue recognition for each year and for contract completion in 2007, if the customer did not take control of the asset until the building was fully constructed and title transferred. (If no entry is required for a transaction/event, sele- "No journal entry required in the first account field. Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet 2 Record the costs of construction. Note: Enter debits before credits Debit Credit General Journal Date 20X5