Deferred gross profit on instalment sales Question 9 [25 points] In February 2013, Northstar Corp. began construction on a commercial building for Stiller Co. which had a contract price of $3,200,000. The construction is scheduled to be completed in May 2015 Contract information for all three years is given below at the company's December 31 year-end. Contract costs incurred during the year Estimated additional costs to complete Bitings to Stier Co. during the year Cash collections during year 2013 2014 2015 600,000 1,900,000 400,000 2.300,000 100,000 550,000 1,850,000 800,000 525,000 1,725,000 950,000 Using the percentage-of-completion method, fil in the incomplete journal entries for Northstar Corp. Please make sure your final answers) are accurate to the nearest whole number Date Account December Construction in progress 2013 to 2015 Cash, materials, etc December Accounts receivable. 2013 to 2015 Bilings on construction contract December Cash 2013 to 2015 Accounts receivable. December Construction expense, 2013 to 2015 Construction in progress (gross profit).. Revenue from long-term contracts December Bilings on construction contract 2013 to 2015 Construction in progress 2013 2014 2015 Dubit Credit De Cruds Deli Credt Question 10 [14 points] Using an example, describe the problem of adverse selection and discuss the role of financial accounting in trying to resolve this problem. MacBook Air