The Rice Company signed a contract to build a dam over a period of three years for a price of $10,000,000. Information relating to the performance of the contract is summarized as follows:

Required
Prepare journal entries for all three years under
(1) The percentage-of-completion method, and
(2) The completed-contractmethod.

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2007 2008 2009 Construction costs incurred during the year Estimated costs to complete Billings during the year Collections during the year $2,000,000 $4,000,000 $6,000,000 6,000,000 6,000,000 1,500,000 3,500,000 5,000,000 1,300,000 3,600,000 5,100,000