Ace Construction Corp. was awarded a contract to build a bridge in a suburb of Calgary at a total contract price of $9,000,000. The estimated total costs to complete the project were $7,000,000. Ace Construction uses the percentage-of-completion method for all such contracts.

Required:

1. Prepare the entry to record construction costs of $4,200,000, on construction in process to date.

2. Prepare the entry to record progress billings of $1,800,000.

3. Prepare the entry to recognize the profit that can be recognized to date