Bailey Builders Corporation accepted a three-year, $1,000,000 fixed-fee contract to renovate a parking deck. Bailey uses the completed contract method of measuring progress. Information related to the construction contract is presented below.

Description

Reading order description of t-table

Contract price	$1,000,000
	2015	2016	2017
Actual construction costs incurred during the year	$350,000	$525,000	$ 50,000
Construction costs incurred in prior years	0	350,000	875,000
Cumulative construction costs incurred to date	$350,000	$875,000	$925,000
Estimated costs to complete	450,000	25,000	0
Estimated total costs	$800,000	$900,000	$925,000
Progress billings made during the year	$500,000	$300,000	$200,000
Cash collections during the year	400,000	$350,000	$250,000

Prepare the journal entries required in each year to record the contract. Show all supporting computations.