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Part A As at 1 January 2022, HK Wave Limited started a long-term contract to construct a warehouse with a contract price of $1,500,000. The construction project will be completed on 31 December 2024. Costs for the three years are shown as below: 2022 2023 2024 Actual costs to date $200,000 $600,000 $1,100,000 Estimated costs to complete the project 800,000 600,000 -0. The Company's financial year-end is 31 December Required: (Round the percentage of completion, if any, to 2 decimal places and round the answers to the nearest dollar.) (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (6 marks) (b) Using the cost-recovery method, compute the estimated gross profit that would be recognized during each year of the construction period. (3 marks) (c) Assume the estimated costs to complete the project (in 2023) changed from $600,000 to $811,765, what will be the estimated gross profit loss that would be recognized during each year (using the percentage-of-completion method)? (8 marks) Part B On 15 December 2021, HK Wave Limited entered a contract with Asia Concrete Company. It purchased $15,000 concrete from Asia Concrete Company, with credit terms of 2/10,n/30. Asia Concrete delivered the concrete on 18 December and received the payment on 20 December. Required: (Answers should be rounded to the nearest dollar.) (a) Prepare the journal entries for HK Wave Limited related to this contract, assuming it adopts perpetual inventory system and gross method to record the purchase. (6 marks) (b) Asia Concrete Company recorded the sales revenue on 15 December 2021. Is it correct? Justify your answer with revenue recognition principle. (4 marks)