During 2018, the Samuelson Construction Company began construction on an office building for the City of Gernon. The contract price is $8,000,000 and the building will take approximately 18 months to complete. Completion is scheduled for early in 2020. The company's fiscal year ends on December 31 The following is a year-by-year recap of construction costs incurred and the estimated costs to complete the project as of the end of each year. Progress billings and cash collections also are indicated 2019 $4,500,000 1,500,000 6,000,000 1,500,000 7,500,000 $5,200,000 4,000,000 2020 1,550,000 6,000,000 7,550,000 2018 $1,500,000 Actual costs incurred during the year Actual costs incurred in prior years Cumulative actual costs incurred to date -0 Estimated costs to complete at end of year Total costs (actualestimated) Billings made during the year Cash collections during year 1,500,000 4,500,000 $6,000,000 $1,400,000 1,000,000 -0 7,550,000 1,400,000 3,000,000 Required: 1. Determine the amount of construction revenue, construction cost, and gross profit or loss to be recognized in each of the three years assuming (a) the contract qualifies for recognizing revenue over time and (b) the contract does not qualify for recognizing revenue over time Page 272 2. Assuming the contract qualifies for recognizing revenue over time, prepare the necessary summary journal entries for each of the three years to account for construction costs, construction revenue, contract billings, and cash collections, and to close the construction accounts in 2020 3. Assuming the contract qualifies for recognizing revenue over time, prepare a partial balance sheet for 2018 and 2019 that includes all construction-related accounts