Question 3 (13 marks) Assume that KLM Company has contracted to build an office building for HG Company for $6,048,000. HG Company has title to the office building during the entire construction period. The construction costs were estimated initially to be $4,636,800. Other relevant data is as follows: 2017 2018 2019 $1,622,880 $2,250,400 $904,000 3,013,920 968,320 0 Current period costs Estimated additional costs to complete Progress billings Collection on billings-current year 1,260,000 913,500 1,890,000 2,898,000 1,260,000 3,874,500 Additional information: Contract price remained unchanged throughout the construction. Required: 1. Calculate the revenues to be recognized for the years 2017 and 2018 assuming KLM Company uses the percentage of completion method. Calculate the percentage, complete rounding to the nearest whole percent. (4 marks) 2. Prepare journal entries for KLM Company for 2017 using the percentage of completion method. I9 marks) 2017 2018