In 2020 Coco Corporation signed a contract to construct a major office building for a developer. The construction is expected to take 3 years. The contract price is $50 million. The actual costs incurred each year, the estimated costs of completing the project as of the end of each year, the progress billings for each year, and the collections of those billings each year are presented in the chart below.

	2020	2021	2022
Actual costs incurred during each individual year	$10,000,000	15,000,000	12,500,000
Estimated costs (in future years) to complete, as of the end of each individual year	30,000,000	14,000,000	---
Billings during each individual year	11,000,000	16,500,000	22,500,000
Collections during each individual year	10,275,000	15,225,000	22,000,000

1. Prepare, in good, easy-to-follow form, a schedule computing the amount of revenues or gross profit (your choice) to be recognized on this project in each year using the percentage-of-completion.
2. Prepare all the journal entries required in 2021 by the information provided.
3. Explain, precisely, the amounts to be reported in the 2020 income statement and the December 31, 2017 balance sheet for this contract.