Stellar Construction entered into a contract to build a commercial building for $3,600,000. Stellar Construction uses the percentage-of-completion method for recognizing revenue on the project. Construction began in September of 2018 and the building was completed in June of 2020. The company provided the following additional information on the project.

Prepare the journal entries for the balance sheet in each year of the project.

2018 2019 2020 Costs incurred to date $ 725,000 $ 2,100,000 $ 3,400,000 Estimated costs to complete 2,175,000 $ 1,400,000 $ Billings during the year 800,000 $ 1,650,000 1,150,000 Cash collected during the year $ 450,000 $ 1,900,000 1,200,000