Hi-Beam Contracting specializes in building sports stadiums. Late in 2019, they were the winning bidder on a stadium in Kamloops, British Columbia. The contract price is $90,000,000, and they estimate their cost as $60,000,000. Hi-Beam uses the asset/liability approach and follows IFRS. The following table outlines their results over the 3 years of construction.

2019

2020

2021

Costs to date

$27,000,000

$45,000,000

$61,000,000

Estimated costs to complete

$33,000,000

$15,000,000

0

Progress billings each year

$25,000,000

$30,000,000

$35,000,000

Cash collected each year

$20,000,000

$27,500,000

$42,500,000

1Use the percentage of completion method to calculate the estimated revenue and gross profit for each year of the contract. Clearly indicate your answer using the following format. You may provide calculations separately. (8marks)

2.Provide all required journal entries for 2019 and 2020. (12marks)