Thrasher Construction Co. was contracted to construct a building for $975,000. The building is owned by the customer throughout the contract period. The contract provides for the progress payments. Thrashers accounting year ends 31 December. Work began under the contract on 1 July 20X5, and was completed on 30 September 20X7. Construction activities are summarized below by year:

20X5 Construction costs incurred during the year, $180,000; estimated costs to compete, $630,000; progress billings during the year, $153,000; and collections, $140,000.

20X6 Construction costs incurred during the year, $450,000; estimated costs to compete, $190,000; progress billings during the year, $382,500; and collections, $380,000.

20X7 Construction costs incurred during the year, $195,000. Because the contract was completed, the remaining balance was billed and later collected in full per the contract.

Required:

Now assume that the building is owned by Thrasher through the construction period and the title is transferred to the customer only once the building is fully contracted. Prepare the journal entries required to record the events from 20X5 to 20X7. Also, calculate the balances that would be shown on the SCI and SFP for this contract for each year