i do need you help please!! I need the solutions of No.2 and No.3

OHM CORPORATION MAJOR PROJECTS UNDER CONSTRUCTION AT END OF YEAR 20X5 Total Billings Collections Contract Costs Estimated Costs Project Contract Price Through 12/31/X5 Through 12/31/X5 Incurred For 20X5 To Complete 1065 12,000,000 6,000,000 5,750,000 4,800,000 4,200,000 1120 900,000 270,000 240,000 300,000 450,000 1247 8.000,000 1,000,000 1,100,000 1,675,000 4,875,000 OHM CORPORATION ESTIMATES TO COMPLETE MAJOR PROJECTS UNDER CONSTRUCTION FOR YEARS 20X6 AND 20X7 Estimated Cost To Billings Collections Costs Complete Project 20X6 20X7 20X6 20X7 20X6 20X7 20X6 20X7 1065 $ 3,500,000 $ 2,500,000 $ 3,600,000 $ 2,650,000 $ 3,750,000 $ 2,550,000 $ 2,500,000 1120 400,000 230,000 350,000 310,000 350,000 190,000 225,000 1247 6,450,000 550,000 6,250,000 650,000 3,750,000 1,600,000 2,000,000Problem 2 (25 points). Ohm Corporation is in the construction business and was established ten years ago by George Ohm. The company initially was in the business of building high quality customized homes under contract with specific buyers. Recently, Ohm's two sons joined the firm and expanded the company's business into high rise apartment and industrial plant markets in depressed areas. Upon the retirement of the company's long time financial manager, Ohm's sons recently hired Roland (Sticky) Fingers as controller for the company. Fingers, a former college friend of the sons, has been practicing in public accounting since his graduation from college. Upon reviewing Ohm Corporation's accounting practices, Fingers observed that the company followed the completed contract method of recognizing revenues on construction contracts, which was a carryover from the days when the majority of the company's work was building houses. Since the dominant portion of the company's activities today is building high rise and industrial buildings which now cover several years, Fingers believes that the company should follow the percentage of completion method of accounting for their construction contracts. The company has the attached major projects under construction during the current period. The attached estimates were also made on each of these contracts for the remainder of the lives of the contracts. REQUIRED: (1) Explain the difference between the completed contract revenue recognition method and the percentage of completion revenue recognition method. (2) Prepare all journal entries required for these three projects for each year 20X5, 20X6, and 20X7 using the percentage of completion method. (3) Show the amounts that would be reported on the company's income statement and balance sheet for each year using the percentage of completion method. 11