New Tab uleth.ca 202003/pluginfile.php/220160/mod_resource/content/3/Problem%201%20Version%20B.pdf Question 1 (Version B) 24 Marks Built-it Inc. is a builder of large digital networks. In the midst of the high-tech euphoria, the company bid and won a $38 Millions contract to build a network for the country of India. Details on the project over the three years are as follows: In Millions) Cumulative costs incurred Additional costs to complete as estimated at year end Year $14 25 Year 2 $26 12 Year 3 $44 10 Amounts invoiced to customer in the year Cash collected in the year from the customer 11 10.5 16 15 11 12.5 Required: (a) Calculate the amount of revenue, cost of goods sold (COGS), and gross profit (or loss) to be recognized in each of the three years. The company uses the percentage of completion method to account for long-term contracts. Please show your calculation. Round any percentages to the nearest whole percentage, e.g., 50.4% would be 50%. (12 marks) Year 1 Year 2 Year 3 Revenue Less: Cost of goods sold Less: Expected loss (recovery) Gross profit (loss) Total $38 44 0 (6) (b) Provide the journal entries that would need to be made at the end of Year 1. For each account shown in a journal entry, indicate whether it is a balance sheet (b/s) or income statement (is) account