1. Sunshine Construction Company, Inc., entered into a fixed-price contract with Beta Associates on Jan 1, 2007, to construct a four-story office building. At that timc, Curtiss estimatod that it would take four years to complete the project. The total contract price for construction of the building is S4,000,000. Sunshine appropriately accounts for this contract under the completed contract method in its financial statements. The building was completed on December 31, 2010. actual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Beta under the contract were as follows 2007 2008 2009 2010 Construction Cost incured during the year 350,000 220,000 2,230,000 000,000 Estimated Costs to complete 150,000 3230,000 1400,000 t the end of year Billings made during the year Cash collections during the year Required (1) Prepare schedules to compute gross profit or loss to be rocognized as a result of this contract for 1,500,000 , 500,000 500,000 500,000 1,800,000 ,000,000 ,000,000 200,000 cach of the four years under "percentage-of completion method and Completed contract me (2) Prepare the necessary Journal entries for 2007- 2010 under method" (3) What should the balances in 2007,2008 and 2009 be listed in the "Balance Sheet" if using percentage-of-completion method. 2. Westen Co.contracted a road for Santa Co. for $10,000,000 in 2011, the road was completed in 2015. Information related to the contract is as 2011 2012 2013 2014 2015 Costs incurred during the Yr 2400 2,600 500 1,000 s00 Estimated costs to complete 5600 3,000 5,000 550- Prearranged Schedule Billings 2,000 2000 2,000 2000 2,000 Cash Received Required: (Show all computations) (20 points) (1) Calculate 2011-2015 gross profit to be recognized if using percentage-of-completion and 1,500 1,800 2,500 2200 2,000 completed contract method. (2) Prepare all entries for 2011-2015 under using