Using the information provided in ES-15, assume that Bailey uses the completed-contract method. Prepare the journal entries required in each year to record the contract (show all supporting computations).

Contract price $1,000,000 2018 2019 2020 Actual construction costs incurred during the year $350,000 $ 525,000 $ 50,000 Constniction costs incurred in prior years 350,000 875,000 Cumulat ve construction costs incurred to date 350,000 875,000 925,000 Est mated costs to complete 450,000 25.000 Est mated tota costs 800,000 900,000 925,000 Progress bil ngs made dur ng the year 500,000 300,000 200,000 Cashcollections during the year 400,000 350,000 250,000