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Question 3 (13 marks) Assume that OPPS Company has contracted to build an office building...

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Question 3 (13 marks) Assume that OPPS Company has contracted to build an office building for HUG Company for $3,216,000. HUG Company has title to the office building during the entire construction period. The construction costs were estimated initially to be $2,465,000. Other relevant data is as follows: 2017 2018 2019 $986,000 $1,319,900 1,479,000 576,475 $568,000 0 Current period costs Estimated additional costs to complete Progress billings Collection on billings-current year 670,000 485,750 1,005,000 1,541,000 670,000 2,060,250 Additional information: Contract price remained unchanged throughout the construction. Required: 1. Calculate the revenues to be recognized for the years 2017 and 2018 assuming OPPS Company uses the percentage of completion method. Calculate the percentage complete to the nearest whole percent. (4 marks) 2. Prepare journal entries for OPPS Company for 2017 only using the percentage of completion method. (9 marks) 2017 2018 General Journal Date Account Titles and Explanation Debit Credit

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