Question 3 (13 marks) Assume that OPPS Company has contracted to build an office building for HUG Company for $3,216,000. HUG Company has title to the office building during the entire construction period. The construction costs were estimated initially to be $2,465,000. Other relevant data is as follows: 2017 2018 2019 Current period costs $986,000 $1,319,900 $568,000 Estimated additional costs to 1,479,000 576,475 0 complete Progress billings 670,000 1,005,000 1,541,000 Collection on billings-current year 485,750 670,000 2,060,250 Additional information: Contract price remained unchanged throughout the construction Required: 1. Calculate the revenues to be recognized for the years 2017 and 2018 assuming OPPS Company uses the percentage of completion method. Calculate the percentage complete to the nearest whole percent. (4 marks) 2. Prepare journal entries for OPPS Company for 2017 only using the percentage of completion method. (9 marks) 2. Prepare journal entries for OPPS Company for 2017 only using the percentage of completion method. (9 marks) 2017 2018 General Journal Account Titles and Explanation Date Debit Credit