CuttingEdge Construction Company was hired by High Impact School to add a new stadium to their school. The stadium includes a consession stand, new restrooms, new locker rooms, a parking lot and the stadium itself. The contract had 5 phases of construction with each phase being a performance obligation. The transaction price of the product is $2,675,000. As each phase involves a sperate part of the stadium, each phase is fully functional at the point of delivery.

Each of the phases has standalone value as follows:

Phase	Standalone Sales Value
Phase 1	300,000
Phase 2	760,000
Phase 3	560,000
Phase 4	440,000
Phase 5	940,000
	3,000,000

The contract price is collected in advance from High Impact School. Phases 1 and 2 are completed in the current year with Phases 3 and 4 to be completed the following year. Phase 5 will be completed in the 3rd year of construction.

Required: Prepare the journal entry to record any revenue to be recognized during the current period.

Account				Debit	Credit