Long-term contracts Revenue Recognition over Time (pages 18-36 through 18-46) Required: A. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. [Format for gross profit schedule is provided.] B. Prepare all necessary journal entries for 2021, 2022, and 2023. [Format for journal entries provided.] C. Post all amounts to be entered into the 'Accounts Receivable', 'Construction in Process' and 'Billings on Construction in Process accounts for all three years. ['T' account formats provided.) D. Prepare the closing entry for the contract. [Record with journal entries.] E. Show accounts and amounts that would appear in the Income Statement and Balance Sheet for 2022. [Formats for partial statements provided.] Practice Information: During 2021, Wilcox Company started a construction job with a contract price of $1,000,000. The job was completed in 2023. The following information is available $ Costs incurred to date Estimated costs to complete Billings to date Collections to date 2021 280,000 $ 420,000 350,000 250,000 2022 2023 320,000 $ 800,000 320,000 800,000 550,000 1,000,000 500,0001 - 950,000 A. Gross profit recognized 2021 2022 2023 Contract price XXXX XXXX Costs: Costs to date Estimated cost to complete Total estimated cost XXXX XXXX Total estimated profit XXXX XXXX X Percentage completed to date * Total gross profit recognized XXXX XXXX Less: Gross profit from previous years Gross profit recognized in current year XXXX * Show calculations of Gross Profit percentages for each year 2021 Percentage to date 2022 Percentage to date 2023 Percentage to date Wilcox Company Income Statement For the Year Ending 2022 Wilcox Company Balance Sheet December, 2022 XXXX Revenue from Long-Term Contract Cost of Construction Gross Profit Current Assets Accounts receivable XXXX XXXX XXXX Inventory Construction in Process Less: Billings XXXX Cost and recognized profit in excess of billings XXXX