on IV - Revenue Recognition (24 points) Construction Accounting Calvin Construction uses the percentage-of-completion method of accounting. During 2017, Calvin Construction started work on a $1.620.000 construction contract, which it plans to complete in 2019. The following information was taken from Calvin Construction's accounting records Costs incurred to date Estimated costs to complete Total estimated costs at year-end Billings to date Collections to date 2017 $444,400 565,600 1,010,000 301.000 272.000 2018 $867,420 230,580 1,098,000 904,000 814,000 2019 $1,060,000 -0- 1.060,000 1.620.000 1,411.000 a) Prepare the journal entry to record revenue, expense and gross profit (loss) that Calvin Construction will recognize on this contract for the year ended 12/31/17 using the percentage- of-completion method. Prepare the December 31, 2017 balance sheet disclosure of construction in process and related Be sure to indicate whether the amount is an asset or a liability. Construction Accounting (continue) c) Prepare the journal entry to record revenue, expense and gross profit (loss) that Calvin Construction will recognize on this contract for the year ended 12/31/18 using the percentage- of-completion method. d) Prepare the journal entry to record revenue, expense and gross profit (loss) that Calvin Construction will recognize on this contract for the year ended 12/31/19 using the percentage of-completion method. e) Compute the amount of gross profit to be recognized each year, assuming Calvin Construction uses the completed-contract method. 2019 2018 2017 Gross Profit