Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $138,400. Total construction costs incurred in each year were as follows: 20X5 $2, 682, 000 20X6 $4, 470, 000 20X7 $1, 788, 000 Billings (and cash collections) each year were as follows: 20X5 $2, 284,500 20X6 $4, 867, 000 20X7 $3, 724,500 Required 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit 20X5 $ 3,311,082 x $ 629,082 X 20X6 5,048,536 X 578,536 20X7 3,206,464 X 1,418,464 X Total $ 11,566,082 2,626,082 "Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) No Date General Journal Debit Credit 20X5 Construction in progress inventory x 2,682,000 Cash 2,682,000 2 20X5 Accounts receivable 2,284,500 Billings on contracts 2,284,500 3 20X5 No journal entry required OX No journal entry required X O X 20X5 Construction costs 2,682,000 x Construction in progress inventory 629,082 x Revenue-long-term contracts 3,311,082 X2. Prepare the journal entries for revenue recognition for each year and for contract completion in 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) General Journal Debit Credit No Date 20X5 Construction in progress inventory X 2,682,000 Cash 2,682,000 2 20X5 Accounts receivable 2,284,500 Billings on contracts X 2,284,500 3 20X5 No journal entry required OX No journal entry required X Ox 4 20X5 Construction costs 2,682,000 X Construction in progress inventory X 629,082 X Revenue-long-term contracts 3,311,082 x 5 20X5 No journal entry required OX X No journal entry required OX No Date General Journal Debit Credit 1 20X6 Construction in progress inventory 4,470,000 Cash 4,470,000 2 20X6 Accounts receivable 4,867,000 Billings on contracts X 4,867,000 3 20X6 No journal entry required O X No journal entry required 20X6 Construction costs 4,470,000 X Construction in progress inventory X 578,536 x Revenue-long-term contracts 5,048,536 X 5 20X6 No journal entry required Ox No journal entry required OXThis window shows your resp No Dale General Journal Dobi Construction in progress inventory X 4,470,000 20XE 4,470,000 Cash 100 4,867,000 2 20X6 Accounts receivable Billings on contracts X 4,867,000 3 No journal entry required X O X 20X6 No journal entry required O X 20X Construction costs 4,470,000 X Construction in progress inventory X 578,536 X Revenue-long-term contracts 5,048,536 X 5 20X6 No journal entry required X No journal entry required OX No Date General Journal Dobi Credit 1 20X7 Construction in progress inventory X 1,788,000 Cash 1,788,000 2 20X7 Accounts receivable 3,724,500 Billings on contracts X 3,724,500 3 20X7 No journal entry required X O X No journal entry required X OX 4 20X7 Construction costs X 1,788,000 X Construction in progress Inventory X 1,418,464 X Revenue-long-term contracts 3,206,464 X 5 20X7 Billings on contracts X X Construction in progress inventory "Red lead Indertes no response was expected in a call or a formula-based calculation is incorrect; no points deducted. X