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1 Part I SUN Construction Company Limited ("SUN") entered into a contract to construct a...

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Accounting

1 Part I SUN Construction Company Limited ("SUN") entered into a contract to construct a toll road for $400,500. The project was begun in 2020 and completed in 2022. Cost and other data relating to the construction project are presented below: 2020 2021 2022 S S S Costs incurred during the year 99,000 119,250 191,250 Estimated costs to complete 189,000 198,000 0 Billings during the year 119,250 105,750 175,500 Cash collections during the year 101,250 105,750 193,500 SUN uses the percentage-of-completion method for revenue recognition. The fiscal year-end date is 31 December. Required: (Show your workings and round the answers to the nearest dollar.) (a) Compute the gross profits (losses) recognized for the financial years 2020, 2021 and 2022, respectively (Note: your workings must show (1) % of completion, (ii) total estimated profit). (9 marks) (b) Prepare a partial Statement of Financial Position for 2020 showing items related to this long- term construction project. (3 marks) (c) Suppose SUN Construction Company Limited uses the Cost Recovery Method for revenue recognition. Calculate the gross profits (losses) recognized for the financial years 2020, 2021 and 2022, respectively

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