Buildit Corp. was contracted to construct a building for $ 1,600,000. the contract provided for progress payments. Buildit’s accounting year ends 31 December. Work began under the contract on 1 March 20X3 and was completed on 30 November 20X5. Construction activities are summarized below by year:

20X3 Construction costs incurred during the year, $ 470,000; estimated costs to complete, $ 830,000; progress billings during the year, $ 380,000; and collections, $ 290,000.

20X4 Construction costs incurred during the year, $ 700,000; estimated costs to complete, $ 210,000; progress billing during the year, $ 990,000; and collections, $ 870,000.

20X5 Construction costs incurred during the year, $ 195,000. Because the contract was completed, the remaining balance was billed and later collected in full per the contract.

Required:

1. Give Buildit’s journal entries to record these events. Assume that percentage-of-completion is measured by the ratio of costs incurred to date divided by total estimated construction costs.

2. Provide the balances that would appear on the SCI and SFP for this contract for each year.