21. Builder Inc., a general contractor, signed a contract on October 10, YR07 to construct a new building for Purchaser Co. All construction activity will be completed by subcontractors who are hired and supervised by Builder Inc. Terms of the contract are as follows: 1. The base contract price is $2,500 2. If the project is completed by May 1, YR08 the contract price will be increased by a bonus of $200. 3. If the project is delay beyond August 1, YR08 the contract price will be reduced by a penalty of $300. The year-end for Builder Inc. is December 31. Accounting policies for Builder Inc. require that all adjusting entries be made once a year, at December 31. Key events related to this contract are provided below. Date Description of Transaction 11-1-YRO7 11-15-YR07 11-30-YRO7 12-1-YRO7 12-31 - YR07 Paid subcontractors $500. Billed Purchaser Co. $1,200. Received a payment of $900 from Purchaser Co. Paid subcontractors $700. Estimated the contract would take another $800 to be completed and that the completion date would be July 1, YR08. Made all necessary adjusting journal entries. 2-10-YR08 3-25-YROS Paid subcontractors $600. Determined that the project would be completed on April 1, YR08 and billed Purchaser Co. for the balance of the contract price. Completed the project and made final payment to subcontractors for $200. Received a payment of $1,000 from Purchaser Co. Made all necessary adjusting journal entries. 4-1 - YR08 6-1-YROS 12-31-YROS REQUIRED: a. Assuming use of the Completed Contract method, prepare formal journal entries needed to record the above activity