PROBLEM 1 On January 1, 2019, SPUTNIK BUILDERS obtained a contract to construct a building. It was estimated at the beginning of the contract that it would take three years to complete the project at an expected cost of P200,000. The contract price was P250,000. The following information describes the status of the job at the close of production each year: 2019 2020 2021 Actual costs incurred P110,000 P120,000 P15,000 Estimated costs to complete ..... 100,000 20,000 0 Billings on contract 125,000 125,000 0 Collections on contract 120,000 120,000 10,000 Compute the items listed below for each year assuming the use of the percentage-of- completion cost-to-cost method. (Round all percentages to two decimals). Show your solution. 2019 2020 2021 1. Revenue recognized during the year ......... 2. Gross profit recognized during the year. 3. Balance in the construction in progress account at December 31 (after closing entries) ..... 4. Balance in the progress billings account at December 31 (after closing entries)