Star Construction Corp. has a contract to construct a bullding for $10,964,200. The bullding is controlled by the customer throughout the term of the contract. Total costs to complete the bullding were originally estimated at $8,866,200. 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 $145,800 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 Intermedlate calculations to 2 decimal places. Round flinal answers to nearest whole dollars.) -hen text incicates no response was expecteo in a ceil ar a farmula-based calculation is incorrect; no paints deducted. 2. Prepare the journal entrles 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 requlred" In the first account fleld. Round Intermedlate calculations to 2 declmal places.) 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 bullding was fully constructed and title transferred. (If no entry Is requilred for a transactlon/event, select "No journal entry required" In the first account fleld. Round Intermedlate calculations to 2 declmal places.) Star Construction Corp. has a contract to construct a bullding for $10,964,200. The bullding is controlled by the customer throughout the term of the contract. Total costs to complete the bullding were originally estimated at $8,866,200. 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 $145,800 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 Intermedlate calculations to 2 decimal places. Round flinal answers to nearest whole dollars.) -hen text incicates no response was expecteo in a ceil ar a farmula-based calculation is incorrect; no paints deducted. 2. Prepare the journal entrles 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 requlred" In the first account fleld. Round Intermedlate calculations to 2 declmal places.) 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 bullding was fully constructed and title transferred. (If no entry Is requilred for a transactlon/event, select "No journal entry required" In the first account fleld. Round Intermedlate calculations to 2 declmal places.)
