During 2020, Cheyenne Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available.

		2020		2021		2022
Costs incurred to date		$373,700		$749,360		$1,070,000
Estimated costs to complete		636,300		352,640		0
Billings to date		302,000		907,000		1,620,000
Collections to date		268,000		815,000		1,425,000

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Gross profit recognized in 2020		$enter a dollar amount
Gross profit recognized in 2021		$enter a dollar amount
Gross profit recognized in 2022		$enter a dollar amount

Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.)

Account Titles and Explanation

Debit

Credit

enter an account title to record cost of construction

enter a debit amount

enter a credit amount

enter an account title to record cost of construction

enter a debit amount

enter a credit amount

(To record cost of construction.)

enter an account title to record progress billings

enter a debit amount

enter a credit amount

enter an account title to record progress billings

enter a debit amount

enter a credit amount

(To record progress billings.)

enter an account title to record collections

enter a debit amount

enter a credit amount

enter an account title to record collections

enter a debit amount

enter a credit amount

(To record collections.)

enter an account title to recognize revenue

enter a debit amount

enter a credit amount

enter an account title to recognize revenue

enter a debit amount

enter a credit amount

enter an account title to recognize revenue

enter a debit amount

enter a credit amount

(to recognized revenue.)

Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

		2020		2021		2022
Gross profit		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Please show step by step solution. Thank you!