Problem Three: Revenue Recognition In 2018, the Membley Construction Company entered into a contract to construct a storage building for Highland County for $10,000,000. The storage was completed in 2020. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year- end Billings during the year 2018 $2,400,000 5,600,000 2019 $3,800,000 3,100,000 2020 $3,200,000 -0- 2,000,000 4,000,000 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000 Membley Company recognizes revenue over time according to percentage of completion. Required: Calculate the amount of revenue and gross profit to be recognized in each of the three years. Prepare all necessary journal entries for 2018 (credit "various accounts" for construction costs incurred). Prepare a partial balance sheet for 2018and 2019 showing any items related to the contract. Indicate whether any of the amounts shown are contract assets or contract liabilities. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information: 2018 $2,400,000 5,600,000 Cost incurred during the year Estimated costs to complete as of year- end 2019 $3,800,000 4,100,000 2020 $3,900.000 -0