On January 3 of Year 1, the Perez Company agreed to build an office complex on a customer's land; the project is expected to be completed at the end of three years. The project is a single performance obligation to be satisfied over time. Perez determines that the progress toward completion of the project is reasonably measurable using the input method based on costs incurred. The contract price is $13,000,000.

				Year 1	Year 2	Year 3
	Costs incurred during each year:			$ 4,600,000	$ 4,400,000	$ 2,800,000
	Costs expected in the future:			$ 6,500,000	$ 3,900,000	$ -
Contract billings are as follows:				Year 1	Year 2	Year 3
				45%	30%	25%

A. Provide calculations that show the Revenue amount recognized each year.

B. Provide calculations that show the Gross Profit (or Loss) at the end of each year.

C. Provide necessary journal entries for actual costs (use 'Various Accounts' as the credit).

D. Provide necessary journal entries for revenue recognition.

E. Provide necessary journal entries for progress billings.

F. Provide necessary journal entries for closing the CIP & Billings accounts at the end of the contract.