Redmond Construction, Inc. was engaged in the following construction for Company K in 2020. Redmond Construction uses percentage completion method for long term contracts.

Total Contract Price - $260,000.

Contract period 2 years, the project started in 2020 and ending in the year 2021.

The cost incurred through 12/31/2020 - $185,000.

Cash collection as of 12/31/2020 - $145,000.

Billings as of 12/31/2020 - $175,000.

The estimated additional cost to complete the project - $65,000.

a. Compute the revenue to be recognized for Redmond Construction for 2020. (6 points)

b. Provide all the journal entries for the Redmond Construction for the year 2020. (15 points).

c. Show the amounts to be reported in the Assets and Liabilities section of the balance sheet separately for Redmond Construction. (9 points).