Lima Corporation (the Company) which prepares its financial statements in accordance with US GAAP, had three...

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Lima Corporation (the Company) which prepares its financial statements in accordance with US GAAP, had three contracts in process as of December 31, 2023. Your firm is in the process of auditing the Company's 2023 financial statements. Information from the Company's accounting records with respect to Contract A is summarized in the following table. Contract Contract Value Total Cost To Date Total Estimated Cost Billed to Date Revenue Earned Contract Asset Contract Liability A 1,000,000 200,000 800,000 300,000 B 8,000,000 3,000,000 6,000,000 4,000,000 500,000 5,000,000 1,000,000 4,000,000 1,000,000 1,250,000 Required 1. Complete the preceding table. For Contract A, calculate revenue earned and either the contract asset or contract liability. For Contract B calculate the amount billed to date. For Contract C calculate the contract asset or contract liability. 2. For Contract A, list three items that could potentially impact the Company's calculation of the appropriate amount of revenue earned, in accordance with US GAAP. 3. With respect to Contract A, the management of the Company has calculated a contract liability of $60,000. Based on your calculations in Requirement 1, prepared a proposed adjusting journal entry, if one is necessary to correct management's calculation. Lima Corporation (the Company) which prepares its financial statements in accordance with US GAAP, had three contracts in process as of December 31, 2023. Your firm is in the process of auditing the Company's 2023 financial statements. Information from the Company's accounting records with respect to Contract A is summarized in the following table. Contract Contract Value Total Cost To Date Total Estimated Cost Billed to Date Revenue Earned Contract Asset Contract Liability A 1,000,000 200,000 800,000 300,000 B 8,000,000 3,000,000 6,000,000 4,000,000 500,000 5,000,000 1,000,000 4,000,000 1,000,000 1,250,000 Required 1. Complete the preceding table. For Contract A, calculate revenue earned and either the contract asset or contract liability. For Contract B calculate the amount billed to date. For Contract C calculate the contract asset or contract liability. 2. For Contract A, list three items that could potentially impact the Company's calculation of the appropriate amount of revenue earned, in accordance with US GAAP. 3. With respect to Contract A, the management of the Company has calculated a contract liability of $60,000. Based on your calculations in Requirement 1, prepared a proposed adjusting journal entry, if one is necessary to correct management's calculation.