a. REQUIRED: For Questions 1-2 below, do both items (a and b) and follow the instructions provided here. Provide all the necessary journal entries and adjusting journal entries for each year of the contract b. Provide the income statement and balance sheet reporting for each year of the contract. For the balance sheet reporting, be sure to indicate in which section of the classified balance sheet the account(s) are reported. Ignore the cash account. Your answers and supporting work must be typed. Also, you must include all necessary supporting calculations for adjusting entries or explanations if no adjusting entry is recorded. Assume each firm below has a 12/31 fiscal year end. 1. During 2017, Arkansas Construction started a new construction job with a contract price of $320 million. Arkansas has determined that revenue recognition over time based on the percentage of completion is appropriate for this long term contract. The contract was completed on 12/31/19 with the following information ($ in millions): 2017 2018 2019 Costs incurred in the period (paid in cash) $112.0 $67.8 $128.8 Estimated costs to complete at 12/31 168.0 130.2 0 Billings on contract in the period 110 110 100 Cash collected in the period 100 100 120 2. During 2017, El Monte Construction started a new construction job with a contract price of $750 million. El Monte has determined that revenue recognition over time based on the percentage of completion is appropriate for this long term contract. The contract was completed on 12/31/19 with the following information ($ in millions): 2017 2018 2019 Costs incurred in the period (paid in cash) $462.0 $182.3 $110.2 Estimated costs to complete at 12/31 238.0 113.7 0 Billings on contract in the period 200 400 Cash collected in the period 150 350 250 150