| Q4 Construction contract Company KK received a contract from Company LJ to build an equipment for S10 millions. The project will last for 4 years according to the requirement of the buyer and KK will bill JJ according to the prearranged schedule using installments. The following information are as follows: Construction costs Include: Materials:labour Overhead cost directly related to construction; assume all costs paid in cash. Year 1 Year 2 Year 3 Year 4 Smillions $millions Smillions $millions Contract Price 10 10 10 Construction cost incurred during the year Construction cost incurred in prior years Cumulative actual construction costs Cost to date 2 3 .8 6.3 8.7 Estimated costs to complete at the end of year 6 4.2 2.1 Total estimated and actual construction costs Progress billings made during the year 1.9 2.5 3.3 2.3 Cash collected during the year 1.8 2 5 .2 Required Steps: Identify the contract price Identify the contract costs Determine the progress to date for each period What is % of completion for each year and cumulative revenue to be booked for each vear? Determine ( show in a table) the contract revenue ,contract expense and contract profit for each period To recognize accounts receivable at the point of progress billings For each year: Prepare the journal entries for the recognition of contract revenue, contract expense, the record of progress billings and cash collections