oblem 1 (29 points) n May 1. 2018, Gables Company contracted to build an office building for Park Inc. for a total contract price of $5,000,000. Gables estimates that it will take three years to complete the building. At the end of 2020, the building was deemed substantially completed. Following are accumulated contract cost incurred, estimated costs to complete the contract, accumulated billings to Park, and cash collections from Park (in thousands of dollars). 2018 2019 Costs incurred to date Estimated costs to complete Progress billings during the year 5,200 1,300 1,000 1,3002,295 1,800 1,900 1,950 1,700 Required (5 points) 1. Estimate the percentage of the contract that is completed at the end of each year 2. Determine if there is an expected total/overall loss at the end of any year. If there is a loss indicated, determine the amount of the total/overall loss estimated for that year Required (7 points;, show all computations) the contract, record the journal entries for revenue and gross profitloss (if any). 3. Assume that Gables recognizes revenue upon completion of the contract. For all three years of 2018: 2019: 2020: Required (17 points; show all computations) 4. Now assume that Gables recognizes revenue over time according to the percentage-of: a. For 2018 and 2019, record the journal entries for revenue and gross profit/loss (if any). 2018 2019: b. For 2020, prepare all necessary journal entries related to the contract 2020 To record costs: To record progress billings to customers: To record cash received from customers: To record revenue and gross profit/loss: Entry to close related construction accounts