Please be as detailed as possible in explaining each step.

Problem 7 Accounting for long-term Contracts On July 1, 2016, Jemez Company entered into a contract to build an apartment building. It is estimated that the building will take 3 years to complete. The contract price was $7,800,000. The following information pertains to the construction period. 2018 2016 2017 $2,000,000 $4,060,000 6,200,000 Costs to date Estimated costs to complete 4,000,000 1,740,000 -0- Progress billings to date 1,200,000 4,800,000 7,800,000 900,000 41200,000 7,680,000 Cash collected to date