Using the information provided in E8- 13, prepare the journal entries for each year to record the contract assuming that Gary uses the completed- contract method ( show all supporting computations).
In E8-13

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Contract price $4,000.000 2015 S2,625,000 2016 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs S 900,000 0 2,625,000 $2,625,000 $3,525,000 875,000 $3,500,000 $3,525,000 S2,400,000 S1,600,000 $2.000,000 $2,000,000 Progress billings made during the year Cash collections during the year