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Chapter 6 In-Class Exercise: Construction Contract ( 3 points) (1) Butte Hedd Construction Company was the low bidder on a construction project to build a new sewage system for the city of San Jose for $3,700,000, to be installed under Cottle Road and to disrupt as much traffic as possible while doing so. The project was begun in 2016 and completed in 2017. Cost and other data are presented below: Assume that Butte Hedd recognizes revenue on this contract over time according to the percentage of completion. Prepare all journal entries to record costs, billings, collections, and profit recognition for both 2016 and 2017