You have just started work as the controller for SomeBig Co., a construction company. The 20X0 fiscal year ended October 31, 20X0 and your predecessor left a few things undone. Most importantly, the company started a project constructing an office building for SCR Engineering during the year and there have been no year-end entries made to record any revenues or expenses associated with the project.

Your assistant, Sally, has summarized the entries made during fiscal year 20X0 and 20X1 for you as follows:

	Year20X0		Year20X1
Construction in process inventory	12,500,000		4,500,000
Cash		12,500,000		4,500,000
Note:to record costs incurred on SCR building contract
Accounts receivable	12,200,000		5,800,000
Billings on contract		12,200,000		5,800,000
Note:to record progress billings on SCR building contract
Cash	10,000,000		8,000,000
Accounts Receivable		10,000,000		8,000,00
Note: to record collections on SCR building contract

Sally also has given you the information summarized below:

Total contract price = $18,000,000

Original total estimated costs at the beginning of the project= $17,400,000

Revised total estimated costs as of October 24, 20X0 = $17,000,000

Start date: February 1, 20X0

Estimated completion date: February 1, 20X1

Required: (round dollar amounts to whole dollars, round percentages to 2 decimal places: 23.45%)

1) Under revenue recognition over time, what is the percentage of completion to date by the end of year 20X0?

Percentage of completion to date (in %): _______.

2) Under revenue recognition over time, what is the 20X0 year-end adjusting journal entry (you must indicate no entry required if that is the case)?

3) Under revenue recognition over time, what is the 20X1 year-end adjusting journal entry (you must indicate no entry required if that is the case)?

4) Assuming revenue is recognized over time approach, show how the balances in the following G/L accounts for this project would be presented on the 20X0 year-end Balance Sheet: Billings on Contracts, Construction In Progress. For each line item, indicate the amount and whether it should be reported in the Asset, Liability or Equity section of the balance sheet.

5) Identify how much gross profit (or loss) should be recognized in fiscal years 20X0 and 20X1, under each of the two possible revenue recognition methods: Note that if there was no profit nor loss recognized, enter "0" and do not leave the cell blank

please show work especially for question 1