2 Vaughn Enterprises Ltd. has entered a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $10 million. The following data pertain to the construction period (all figures in thousands). 2022 2020 Costs for the year $3,825 Estimated costs to complete 4,675 2021 $4,675 $1,200 1,270 -0- Progress billings for the year (non-refundable) 3,500 4,100 2,400 Cash collected for the year 3,100 4,150 2,750 Instructions a. Using the percentage-of-completion method, calculate the percent complete for each year of the contract. Round the percentage completion to the nearest whole percentage point. Cost up to date Total Cost 2020 2021 2022 % of completion b. Calculate the amount of the gross profit to be recognized each the contract. Revenue Expenses = Gross profit 2020 2021 c. Prepare the journal entries for 2020 and 2021. 2022 year of 2020 2021 d. What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021? e. Show how the construction contract would be reported on the SFP and the income statement for the year ended December 31, 2021