Patricks Party Palace, (P3), purveyors of fine party supplies and fun adventures, had the following transactions/situations that either happened in 2020 (or were from prior years but not discovered until 2020) that have NOT, unless otherwise indicated, been addressed/recorded. NOTE: P3 has a tax rate of 32% for the current and all future years. Prepare Journal Entries

1. P³ took on a project to construct a new warehouse for a supplier. P³ has experience in this kind of work as the company has built three of these specially designed warehouses which are highly automated. The project is expected to take 18 months to complete and construction began in 2020. P³ will use the percentage-of-completion method to account for this project. The contract price is $2,200,000. Details are:

	2020	2021
Costs incurred during the year	640,000	1,425,000
Estimated costs to complete	960,000	0
Billings during the year	420,000	1,680,000
Collections during the year	350,000	1,500,000