LONG TERM CONTRACTS Steadfast Construction Ltd. builds apartment buildings & uses the percentage of completion method for reven recognition. Information on a $2.8 million three-year construction contract is as follows: 2021 2022 2023 Costs incurred to date (at Dec 31) $ 500,000 $ 1,125,000 $1,825,000 $1,500,000 $ 875,000 $ Estimated costs to complete (at Dec 31) Progress billings during the year (non-refundable) $ 650,000 $1,200,000 $ 950,000 Collections during the year $ 450,000 $1,025,000 $1,150,000 Required: 1. Calculate the gross profit that should be recognized in 2022. [6 marks] 2. Prepare the journal entries that should be recorded for 2022. [10 marks] Click on this link to answer the above two questions using Microsoft Excel: Note: Journal entries for 2021 and 2023 are NOT required.

LONG TERM CONTRACTS Steadfast Construction Ltd, builds apartment buildings \& uses the percentage of completion method for reven recognition. Information on a \$2.8 million three-year construction contract is as follows: Required: 1. Calculate the gross.profit that should be recognized in 2022 . [6 marks] 2. Prepare the joumal entries that should be recorded for 2022. [10 marks] than this link to answer the above two questions using Microsoft Excet: We: fournat entries for 2021 and 2023 are NOT required