Sandhill Construction Company signed a contract commencing in March 2020 to build Murphy Manor, an apartment complex. The total contract price is $60.4 million and is expected to be completed in June 2022 at a cost of $52.3 million. The contract also specifies a series of progress billings at various stages of construction (i.e., a certain percentage on signing, an additional billing on breaking ground, etc). As of December 31, 2020, Sandhills fiscal year-end, the company had incurred $10.460 million in costs and has invoiced $7,600,000 in progress billings, of which $1,200,000 has been collected. Prepare all journal entries required for the year ended December 31, 2020, using the percentage-of-completion method. Use Accounts Payable for costs incurred to date

1 journal entry to record 2020 cost of construction

2 journal entry to record the progress billings

3 to record cash collections

4 to record revenue 2020

5 construction expense