aand b

Question 2 Lian Seng Construction Co. was contracted to construct a factory for $5,250,000. Construction started during 2020 and was completed in 2021. Information relating to the contract is as follows: 2021 $1,500,000 Cost incurred during the year Estimated additional costs to complete Billings during the year Cash collections during the year 2020 $2,900,000 1,450,000 2,600,000 2,400,000 2,650,000 2,850,000 Required: (a) For EACH of the years ended 2020 and 2021, calculate the percentage of completion to- date, revenue recognised for the year and the profit recognised for the year. (12 marks) (b) Provide the necessary journal entries at the end of 2020 and 2021 to record the above transactions relating to the above contract. (18 marks)