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Sunny Inc. is a publicly reportable enterprise. Its year end is December 31. In 2018, it entered into a $24 million, long-term contract to construct
Sunny Inc. is a publicly reportable enterprise. Its year end is December 31. In 2018, it entered into a $24 million, long-term contract to construct a small office complex. This is a single performance obligation settled over time and has elected to use the cost-to- cost input method to measure progress. 2018 2019 2020 Costs incurred during the year 8,000 11,000 6,500 Cumulative costs 8,000 19,000 25,500 Estimated costs to complete 12,000 7,000 0 Progress billings during 8,500 the year 12,500 2,000 12,600 4,500 Collections during the 6,900 year 1. Prepared all required summary journal entries for 2018. 2. Prepared all required summary journal entries for 2019. 3. Prepared all required summary journal entries for 2020. 4. Summarize the accounts and amounts (excluding cash) that will be reported on Sunny's statement of financial position as at December 31, 2019, pertaining to this contract. Assume that all accounts payable have been paid
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