1. (25 pts) Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows: Costs to date Cost to complete 2016 $1,500,000 $4,500,000 2017 $4,000,000 $2,200,000 2018 $6,200,000 $0 $5,800,000 $9,000,000 Amounts billed to date $1,400,000 Amounts collected to date $1,300,000 $4,300,000 $9,000,000 Record all journal entries necessary for 2017 below: Give the balance sheet presentation of the construction at the end of 2017. Assume that Stanford uses the completed contract method. Determine the amount of revenue and expense to be recognized in: 2016 2017 2018 Revenue Expense