Question 1 (20 marks) Sunshine Construction Company Limited engaged in a construction project. The project was begun in 2022 and completed in 2025 with contract price of $2,500,000. Cost and other data relating to the project was presented below: Assume that the Company uses the PERCENTAGE-OF-COMPLETION METHOD for revenue recognition. The Company's financial year-end is 31 December. Required: (Answers should be rounded to two decimal places if necessary) (a) Calculate the gross profits (losses) recognized for the financial years 2022, 2023,2024 and 2025 , respectively. (Show your workings clearly) (4 marks) (b) Prepare the journal entries necessary to record the above information on the Company's books during 2022. (5 marks) (c) Prepare an extracted Statement of Financial Position for 2022 and 2023 showing items related to this long-term construction project. (8 marks) (d) Compute the gross profits (losses) recognized for the financial years 2022, 2023,2024 and 2025, assuming the company uses the COST RECOVERY MIETHOD to account for the long-term contract. (3marks) Question 2 (10 marks) Sunset Company signed a contract with Rose Company on 1 May, 2022. According to the contract, Sunset has to deliver a machine (at a cost of $100,000 ) to Rose on 1 June, 2022. The selling price $300,000 includes installation service (which has a standalone selling price of $20,000 ). Sunset charges the same price for the machine irrespective of whether it does the installation or not. The installation process does not involve changes to the features of the machine and is expected to take six months to complete. The installation service could be provided by other venders. Rose settled the payment on 1 June and chose Sunset to do the installation. Required: Prepare the journal entries for Sunset Company for the month of June 2022. (Specify the date clearly) (10 marks)