Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 205. Actual costs were in line with estimated costs for 205 and 206. In 207, actual costs exceeded estimated costs by $138,400 Total construction costs incurred in each year were as follows: Billings (and cash collections) each year were as follows: Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 207. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) 1 Record the costs of construction. 4 Record the recognize revenue for performance completed to date. 5 Record the recognize costs related to revenue recognized to date. Note : = journal entry has been entered 4 Record the recognize revenue for performance completed to date. 5 Record the recognize costs related to revenue recognized to date. Note : = journal entry has been entered 3. Prepare the journal entries for revenue recognition for each year and for contract completion in 207, if the customer did not take control of the asset until the building was fully constructed and title transferred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) Record the costs of construction. 12 Record the progress billings. 3 Record the cash received. Note: = journal entry has been entered Journal entry worksheet 34 Note: Enter debits before credits. Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 205. Actual costs were in line with estimated costs for 205 and 206. In 207, actual costs exceeded estimated costs by $138,400 Total construction costs incurred in each year were as follows: Billings (and cash collections) each year were as follows: Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 207. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) 1 Record the costs of construction. 4 Record the recognize revenue for performance completed to date. 5 Record the recognize costs related to revenue recognized to date. Note : = journal entry has been entered 4 Record the recognize revenue for performance completed to date. 5 Record the recognize costs related to revenue recognized to date. Note : = journal entry has been entered 3. Prepare the journal entries for revenue recognition for each year and for contract completion in 207, if the customer did not take control of the asset until the building was fully constructed and title transferred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) Record the costs of construction. 12 Record the progress billings. 3 Record the cash received. Note: = journal entry has been entered Journal entry worksheet 34 Note: Enter debits before credits
