Question 1 (30 marks) On Aug 15, 2022, Congo Construction entered into a long-term construction contract...

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Question 1 (30 marks) On Aug 15, 2022, Congo Construction entered into a long-term construction contract for Disney to build a new theme park in Bangladesh for $220 million. The proposed name of the new theme park is "The Dream World". The expected completion date is April 1 of 2024. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in thousands): - 2022 2023 2024 Costs incurred during the year $40,000 $80,000 $50,000 Estimated costs to complete as of 120,000 60,000 0 year-end Billings during the year 50,000 150,000 20,000 Cash collections during the year 30,000 160,000 30,000 Part B Congo uses the cost recovery method of accounting for long-term construction contracts. Based on the information given above, Required: (Explanations are not required for journal entries, and round up your answers in integer) (a) Calculate the amount of revenue to be recognized in each year. (2 marks) (b) Prepare all necessary journal entries for the year 2024 in relation to the long- tern construction contract. (8 marks) Question 1 (30 marks) On Aug 15, 2022, Congo Construction entered into a long-term construction contract for Disney to build a new theme park in Bangladesh for $220 million. The proposed name of the new theme park is "The Dream World". The expected completion date is April 1 of 2024. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in thousands): - 2022 2023 2024 Costs incurred during the year $40,000 $80,000 $50,000 Estimated costs to complete as of 120,000 60,000 0 year-end Billings during the year 50,000 150,000 20,000 Cash collections during the year 30,000 160,000 30,000 Part B Congo uses the cost recovery method of accounting for long-term construction contracts. Based on the information given above, Required: (Explanations are not required for journal entries, and round up your answers in integer) (a) Calculate the amount of revenue to be recognized in each year. (2 marks) (b) Prepare all necessary journal entries for the year 2024 in relation to the long- tern construction contract. (8 marks)