Group Assignment $1-$ Q$1-$ Win $2024$

During $2023,$ Lautoka Company started a construction job with a contract price of $$1,850,000.$ The job is expected to be completed in Fall $2025.$ The following information is available. The contract is non$-$cancellable.

Instructions:

$($a$)$ Using the percentage$-$of$-$completion method, calculate the estimated amount of gross profit to be recognized each year of the construction period.

Round the percentage complete to the nearest whole percentage point.

$\backslash$table$[[2023,,2024,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,]]$

$($b$)$ Prepare all necessary journal entries for $2024.$

$($c$)$ Show how the Construction contract would be reported on the Statement of Financial Position and the Income Statement for the year ended

December $31,2024$

$\backslash$table$[[$Lautoka Company.$],[$Income Statement,$2024,],[\backslash$table$[[$Revenue from$],[$long$-$term$],[$contracts$]],,x$