Section III 35 Points In 2018, Scientific Engineering, Inc., entered into an agreement to construct a research and development laboratory at a contract price of $1,500,000. Financial data related to the project were as follows: 2018 2019 2020 Costs incurred to date $250,000 $1,000,000 $1,250,000 Estimated cost to complete 1,000,000 250,000 Billings to date 210,000 950.000 1,500,000 Cash collections to date 150,000 800,000 1,275,000 Instructions: 1. Determine the amount of profit to be recognized in 2018 and 2019 using the percentage-of-completion method of accounting for long term construction contracts 2. Using the percentage-of-completion method, record the year- end adjusting entries for the recognition of any revenue and/or profit for 2018 and 2019. 3. Determine the balance in the account Construction-in-process at December 31, 2018 under the percentage-of-completion method of accounting. 4. Assume Scientific Engineering elected to use the completed-contract method of accounting for long term construction projects. Under this method what would be the profit recognized in 2019? Use the following worksheets for your answers Scientific Engineering has the following general ledger accounts: Cash Accounts Receivable Materials Construction-in-process Billings on Construction Supplies Land Buildings Equipment Accumulated Depreciation Accounts Payable Wages Payable Taxes Payable Interest Payable Common Stock Retained Earnings Dividends Treasury Stock Construction Revenue Interest Revenue Loss on Investments Gain on Investments Construction Expense Depreciation Expense Wages Expense Interest Expense Dividend Revenue Instruction 115 POINTS) Determine the amount of profit to be recognized in 2018 and 2019 using the percentage-of-completion method of accounting for long term construction contracts (2020 not required) Instruction 2 (10 POINTS) Using the percentage-of-completion method, record the year-end adjusting entry for the recognition of any revenue and profit for 2018 and 2019 Date Account Titles and Explanation Debit Credit Instruction 3 (5 POINTS) Determine the balance in the account Construction-in-Process at December 31, 2018 under the percentage-of-completion method of accounting Instruction 45 POINTS) Assume Scientific Engineering elected to use the completed-contract method of accounting for long term construction projects. Under this method what would be the profit recognized in 2019