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Star Construction Corp. has a contract to construct a building for $10.950,000. The building is controlled by the customer throughout the term of the contract

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Star Construction Corp. has a contract to construct a building for $10.950,000. The building is controlled by the customer throughout the term of the contract . Total costs to complete the building were originally estimated at $8,850,000. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20x5 and 20x6. In 20X7, actual costs exceeded estimated costs by $150,000 Total construction costs incurred in each year were as follows: 20x5 20X6 20x7 $2,700,000 $4,500,000 $1,800,000 Billings each year were as follows: 20x5 20X6 20x7 $2,100,000 $4,900,000 $3,750,000 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.) Revenue Gross Profit Year 20X5 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.) Revenue Gross Profit Year 20X5 20X6 20x7 Total $ os 0 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 20x7 (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.) 2. Prepare the journal entries for revenue recognition for each year and for contract completion in 20x7. (If no entry is required for transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet Record the costs of construction Note: Enter debits before credits Date General Journal Debit Credit 20X5 Search oc N DELL

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