INTERMEDIATE ACCOUNTING 2 PLZ SOLVE URGENTLY

11 points Save Answer American Construction Company has entered into a contract with American University in Cairo beginning January 1, 2017 to construct Digital Library Building. It has been estimated that the costs of the building to be $2,100,000 and the contract price will be $3,265,000. It will take 3 years to construct the building. The company uses percentage of completion method. If the following data pertain to the building during the construction period. 2017 2018 2019 Costs to date $945.000 $1,575.000 $2.135.000 Estimated costs to complete 1.155.000 525.000 -0- Progress billings to date 900.000 1.970.000 3.265.000 Cash collected to date 800.000 1.750.000 3.265.000 Requirements: Required 1: Compute the followings: A. The revenue recognized in the years 2017. 2018 and 2019. B. The gross profit or loss recognized in the years 2017, 2018 and 2019. Required 2: Prepare all necessary journal entries for the year 2018: Required 3: The effect of this contract on the balance sheet on December 31, 2018. Required 4: Assume the same data for the digital library contract except that the estimated cost in 2018 was $1,050,000 instead of $325.000. Compute the followings: A. The gross profit or loss recognized in 2018. B. The balance of construction in process account in December 31, 2018