uestion 1. Arab Construction Company has entered into a contract with University of Bahrain beginning January 1, 2017 to construct medical college building. It has been estimated that the costs of the building to be $4,200,000 and the contract price will be $6,530,000. It will take 3 years to construct the building. The company uses percentage of completion method. If the following data pertain to the building during the construction period. Costs to date 2017 $1,890,000 $3,150,000 2018 2019 $4,270,000 Estimated costs to complete 2,310,000 1,050,000 Progress billings to date 1,800,000 3,940,000 Cash collected to date Requirements: 1,600,000 -0 6,530,000 3,500,000 6,530,000 Required 1: Compute the followings A. The revenue recognized in the years 2017, 2018 and 2019. B. The gross profit or loss recognized in the years 2017, 2018 and 2019. Required 2: Prepare all necessary journal entries for the year 2018: Required 3: The effect of this contract on the balance sheet on December 31, 2018. Required 4 Assume the same data for the medical college contract except that the estimated cost in 2018 was $2,100,000 instead of $1,050,000. Compute the followings: A. The gross profit or loss recognized in 2018. B. The balance of construction in process account in December 31, 2018