wanted to know if my work is right

also need help with journal entries

Format alibri (Body) - 12 - EE E SE Alignment Filter Select Editing Clipboard Font Number Styles Cells B 1 U ahe x x AaBbCcDd AaBbCcDd AaBbcc I Normal 1 No Spacing Heading 1 A Change Editing Styles 116 .b A EEEE 19-21 Paragraph Aa AA ST A C E G H K L Font Styles 1 E 6.37 2 X 2018 2019 2020 Contact Assal Liability nt Technical Assignment #1 Due September 23, 2021 Aclual Costs to date $ 5,000,000 $15,000,000 $ 21,875,000 3 $ 5.000.000 6.500.000 20,000,000 21,000,000 0 nt does not contain $5.500 500.000 On July 15, 2018 Lotus Builders Ltd. (Lotus) entered into a three-year contract to build a 50-unit condominium for $27.5 million. Information about the contract is provided below for the years ending December 31: 25,000,000 20.00% 36,000,000 41.67% 21875,000 100.00% $ 10,500,000 11,500,000 $(14500.000) $ (1000.000) End 2020 vigation tabs, create your document by ading Styles 27.500.000 27.500.000 28.000.000 5,500,000 11,458,333 Estimated total costs for the project Costs incurred during the year Billings during the year Collection on billings during the year 28,000,000 Estimated costs to complete 4 Total Cost of project! 5 Estimated) 6 % of completion 7 8 Expected Revenue 9 10 Revenue recorded to date 11 Revenue recognized in the 12 period 13 Cost recorded in the period 14 Gross Profit 15 Progress billings to date (non 16 refundable) 17 Progress billing in the period 2018 $20,000,000 $5,000,000 $6,500,000 $6,250,000 2019 2020 $21,000,000 $21,875,000 $10,000,000 $6,875,000 $10,375,000 $11,125,000 $10,250,000 $11,500,000 5.500.000 16.541,667 5.000.000 500,000 5,958,333 10.000.000 -4,041,667 6,875,000 9.666,667 6,125,000 6.500.000 16.875.000 21,500,000 6,500,000 10.375,000 11.125.000 Throughout the construction there were many delays resulting in serious concerns about meeting the completion date. In 2020 Lotus brought in additional resources and increased overtime. To its surprise it was able to complete the project a month ahead of schedule on June 15, 2020. This resulted in Lotus receiving a performance bonus of $500,000 for meeting the target date. The performance bonus was not included in the $27.5 million of revenue Lotus expected to generate from the inception of the contract. The total construction costs incurred in 2020 was $6.875,000. On July 2, 2020 all outstanding amounts relating to the project were fully settled. 18 6.250.000 16,500,000 21,750,000 6,250,000 10,250,000 11,500,000 2020 2022 2021 10,000,000 $ 5,000,000 3 $ 6,875,000 $ $ 5,000,000 $ 0.000000 $ 6,875,000 Required: 1) How much revenue and gross profit should Lotus recognize each year of the three years if revenue is to be recognized over time under IFRS? 2) Prepare all annual consolidated journal entries required for the entire term of the contract, assuming that Lotus can recognize revenue over time. 3) What journal entries would Lotus have to make if it had to recognize revenue at a point in time, when control of the building was transferred to the owner when it was completed? 19 Cash collected to date 20 Cash Collected in the period 21 22 a Contract Assel Liability 24 Materials, Cash, Payables 25 To record cost of construction 26 27 Contract Asset Liability Revenue from Long Term 28 Contracts 29 To record revenues 30 31 Accounts Receivable Control Acrilisbili Long Term contracts Ready 5.500.000 5,958.333 15 541667 5.500,000 5,958,333 6.541.667 10.375.000 11.125.000 6.500.000 CONGO E6.37 Sheet2 10275ml 1 11.125.000 WIFRS 15-re Words: 21/266 80% % - + 6096 +