? Deferred gross profit on instalment sales Question 9 [25 points] In February 2013, Northstar Corp. began

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Deferred gross profit on instalment sales Question 9 [25 points] In February 2013, Northstar Corp. began construction on a commercial building for Stiller Co. which had a contract price of $3,200,000. The construction is scheduled to be completed in May 2015 Contract information for all three years is given below at the company's December 31 year-end. Contract costs incurred during the year Estimated additional costs to complete Bitings to Stiller Co. during the year Cash collections during year Using the percentage-of-completion method, fil in the incomplete journal entries for Northstar Corp. Please make sure your final answer(s) are accurate to the nearest whole number 2013 2014 Date Account Construction in progress December 2013 to 2015 Cash, materials, etc 2013 2014 2015 600,000 1,900.000 400.000 2.300.000 100.000 550,000 1,850.000 800,000 525,000 1,725.000 950.000 December Accounts receivable 2013 to 2015 Billings on construction contract December Cash 2013 10 2015 Accounts receivable. December Construction expense 2013 to 2015 Construction in progress (gross profit), Revenue from long-term contracts December Billings on construction contract 2013 to 2015 Construction in progress Dubit Cre Detit Cradl Deli Cred Question 10 [14 points] Using an example, describe the problem of adverse selection and discuss the role of financial accounting in trying to resolve this problem. MacBook Air Deferred gross profit on instalment sales Question 9 [25 points] In February 2013, Northstar Corp. began construction on a commercial building for Stiller Co. which had a contract price of $3,200,000. The construction is scheduled to be completed in May 2015 Contract information for all three years is given below at the company's December 31 year-end. Contract costs incurred during the year Estimated additional costs to complete Bitings to Stiller Co. during the year Cash collections during year Using the percentage-of-completion method, fil in the incomplete journal entries for Northstar Corp. Please make sure your final answer(s) are accurate to the nearest whole number 2013 2014 Date Account Construction in progress December 2013 to 2015 Cash, materials, etc 2013 2014 2015 600,000 1,900.000 400.000 2.300.000 100.000 550,000 1,850.000 800,000 525,000 1,725.000 950.000 December Accounts receivable 2013 to 2015 Billings on construction contract December Cash 2013 10 2015 Accounts receivable. December Construction expense 2013 to 2015 Construction in progress (gross profit), Revenue from long-term contracts December Billings on construction contract 2013 to 2015 Construction in progress Dubit Cre Detit Cradl Deli Cred Question 10 [14 points] Using an example, describe the problem of adverse selection and discuss the role of financial accounting in trying to resolve this problem. MacBook Air

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