Elridge Construction Inc has agreed to build a bridge for a contract price of $4,500,000. The period of construction is estimated to be 3 years for an estimated total cost of $4,000,000. The contract is signed on July 1, 2014, and construction commences immediately. Below is a table with information of the project from 2014 to 2016.

1- Record the journal entries for the 3 years under the % of completion method

2- Prepare the income statement and balance sheet for the 3 years under the % of completion method

2010 2011 2012 $4,050,000 Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year $1,000,000 3,000,000 900,000 750,000 $2,916,000 1,134,000 2,400,000 1,750,000 1,200,000 2,000,000