8 of 8 Question 8 Save Answer 19 points On June 1, 2019, Al-Bader Construction Company contracted to construct a building for Nass Company, for a total contract price of $12,600,000. The project was to be completed by October 31, 2021. The annual costs incurred, estimated costs to complete the contract, billings to Nass and collections for 2019, 2020, and 2021 are given below. 2019 Costs incurred to date $4,320,000 Estimated costs to complete 5,280,000 Billings to date Collections to date 4,800,000 3,000,000 Instructions: 2020 $7,665,000 3,285,000 10,050,000 8,250,000 If Al-Bader Company uses the percentage-of-completion method; 1. Compute the amount of gross profit or loss to be recognized each year. 2. Prepare all necessary journal entries for 2020. 3. Prepare the journal entry to record the completion of the contract in 2021. 4. Prepare partial statement of financial position at December 31, 2019. 5. If Al-Bader Company uses the cost-recovery method, prepare the necessary journal entry to recognize any gross profit in 2021. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIUS Paragraph Arial 10pt 111 EA 2 T 1+1 2021 $10,950,000 F0- 12,600,000 9,750,000