Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below: 2020 2021 Costs incurred during the year $ 450,000 $1,100,000 Estimated costs to complete 1,050,000 0 Billings during the year 400,000 1,400,000 Cash collections during the year 300,000 1,500,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required: a. Compute the amount of gross profit recognized during 2020 and 2021. b. Prepare all journal entries to record costs, billings, collections, and profit recognition. (use separate sheet for all journal entries).