On June 1, 2013, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $5,000,000, submitted by the Shannon Construction Company. Shannon was awarded the contract. Shannon uses the completed contract method to report gross profit. The following data are given to summarize the activities on this contract for 2013 and 2014. Give the entries to record these transactions using the completed-contract method.

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Cost Incurred Estimated Cost Billings oCollections of Contract Year to Complete Billings 2013 2014 S1,xD 3,200,000 $2,420,000 2,290,000 0 2,900,000