Using the information provided in E8-13, prepare the journal entries for each year to record the contract, assuming that Gary uses the completed-contract method (show all supporting computations).

Data from E8-13

Gary Construction Associates accepted a contract to build an office building on January 2, 2018. The company will complete the contract within two years. Gary provided the following information related to the revenue, estimated costs, progress billings, and collections over the two-year period.

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$4,000,000 Contract pr ce 2019 2018 $ 900,000 Actual construction costs incurred dur ng the year $2,625,000 Construct on costs incurred in pr or years 2,625,000 Cumulatve construction costs incurred to date 2.625.000 3.525.000 Estimated costs to complete 875,000 Estimatéd to tal costs 3,525,000 3,500 000 Progress billings made during the year 2,400 000 1,600,000 Cash col ect ons during the year 2,000,000 2,000,000