PART C3-Revenue Recognition - Percentage of Completion [15 marks; approx. 22 mins] Live Music Construction Co. has entered into a non-cancellable contract beginning January 1, 2023, to build a festival amphitheatre. It has been estimated that the venue will cost and will take the following time to construct. The venue will be billed to the purchasing company at The following data pertain to the construction period. Costs to date 2,500,000 3 3,000,000 2023 2024 2025 900,000 2,000,000 2,600,000 Estimated costs to complete 1,600,000 500,000 Progress billings to date (non-refundable) 1,500,000 2,500,000 3,000,000 Cash collections to date 1,200,000 2,400,000 3,000,000 REQUIRED Use the Percentage-of-completion method, calculate the amount of revenue that would be recognized during each year of the construction project. [A] Prepare a schedule to show your computations for the percentage-of-completion for all three years. [5 marks] [B] Prepare the journal entries to required for this project for the first year-2023. [10 marks] [A] Prepare a schedule to show your computations for the percentage-of-completion for all three years. Contract Price Less: Estimated cost: Costs to date Estimated cost to complete Estimated total cost Estimated Gross Profit Percentage of Costs Revenue to recognize Previously recognized To recognize in year 2023 2024 [5 marks] 2025 [B] Prepare the journal entries to required for this project for the first year-2023. JOURNAL Date Explanation PR Debit [10 marks] Credit 31/Dec/23 To record cost of construction 31/Dec/23 To record progress billings 31/Dec/23 31/Dec/23 31/Dec/23 To record collections To record revenue recognized To record construction expenses