On May 1, 2017, Collin Company contracted to construct a factory building for a total contract price of $9,600,000. The building was completed by May 31, 2019. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below.

2017 2018 2019

Contract costs incurred during the year $3,400,000 $2,400,000 $2,900,000

Estimated costs to complete the contract at 12/31 4,600,000 3,100,000 -0-

Billings 1,200,000 4,100,000 4,300,000

Instructions(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.). Show all related journal entries for all three years.(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore incomes taxes.). Show all journal entries for the three years.