QUESTION THREE Part (A) In 20X1, Western Builders Inc. agreed to construct a building for a large multinational corporation at a total contract price of $5,000,000.The contract covers a four-year period and the building is expected to be completed in 20X4. Information relating to the costs and billings for this contract is as follows 20X1 $1,200,000 $2,400,000 $3,300,000 $5,900,000 $2,800,000 $2,400,000 $2,200,000 $2,100,000 $2,300,000 $5,000,000 $5,000,000 1.800,000 $2,200,000 $4,800,000 S5,000,000 20X2 20X3 20X4 Costs incurred to date (vear end Estimated costs to complete Progress billings to date Cash collected to date You have examined all the relevant factors and concluded that the outcome of the construction contract can be reliably estimated. Westen Builders Inc. is listed on the TSX and hasa December 31 year end Required (i) Prepare the journal entries, the partial balance sheet, and the partial income statement for Western Builders Inc. for each of the four years 20X1, 20X2, 20X3 and 20X4 to show the effects of the above construction contract. Ignore effects of income taxes. Show all supporting calculations (ii) Summarize in the following table the balances of the relevant income statement and balance sheet accounts for each of the four years 20X1, 20X2, 20X3 and 20X4 from (i) 20X1 20X2 20X3 20X4 Partial Income Statement for the vear: Construction revenue Construction expense Gross profit (loss) on LT contracts Partial Balance Sheet at end of the vear: Accounts receivable (on LT contracts Inventory: Construction in progress LESS: Billings on contract Construction in progress in excess of billings Liabilities Billings on contract LESS: Construction in progress inventory Billings in excess of construction in progress