Buildit Corp. was contracted to construct a building for $$2,320,000.$ The contract provided for progress payments. Buildit$$s accounting year ends $31$ December. Work began under the contract on $1$ March $20$X$3,$ and was completed on $30$ November $20$X$5.$ Construction activities are summarized below by year:

$20$X$3$ Construction costs incurred during the year, $$590,000$; estimated costs to complete, $$1,070,000$; progress billings during the year, $$500,000$; and collections, $$410,000.$

$20$X$4$ Construction costs incurred during the year, $$940,000$; estimated costs to complete, $$330,000$; progress billing during the year, $$1,590,000$; and collections, $$1,350,000.$

$20$X$5$ Construction costs incurred during the year, $$310,000.$ Because the contract was completed, the remaining balance was billed and later collected in full per the contract.

Required:

$1.$ Prepare 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 income statement and balance sheet for this contract for each year.