Panama Builders, Inc. signed a contract to build a certain project for $4,000. In 2016, $800 of cost was incurred and $400 was billed to the customer and collected. At the end of 2016, it was estimated that it would take $2,400 to complete the project. In 2017, actual additional costs to complete the project amounted to $2,600. The remainder of the contract price was billed in 2017 and collected.

Required:

Prepare all journal entries for both years assuming Panama satisfies its performance obligation over time