Construction Company B made a contract to construct an office building for $ 15,000,000. Construction began in 2017 and completed in 2019. Company B is using the percentage of completion method for long term construction contracts.

Relevant information with regard to office construction is provided below. (in thousands)

2017 2018 2019

Total Actual Costs incurred to date 4,000 8,800 13,000

Costs incurred this period 4,000 4,800 4,200

Estimated costs to completed at year-end 8,000 4,000 0

Estimated total costs of project ? ? ?

Billings during the period 3,500 5,000 6,500

Cash Collection During the Year 2,800 5,600 6,600

Required:

a)Calculate the amount of gross profit or loss to be recognized in each of the three years.

b)Prepare journal entries for 2017, 2018 and 2019 to record the transactions (all expenditures were paid in cash)

c)Write down partial statement of financial position (balance sheet) to show the presentation of the project as of December 31, 2017, 2018 and 2019 except for cash account.