Pharoah Construction was awarded a contract to construct an interchange at the junction of two major freeways in a Canadian city

at a total contract price of $$10,140,000.$ The estimated total cost to complete the project is $$8,112,000,$ and it is expected to take

two years.

Using the percentage$-$of$-$completion method and the cost$-$to$-$cost basis, prepare the journal entry to record construction costs of

$$4,461,600$ for the frst year.