Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below:

		Year 1	Year 2	Year 3
Sale price		$2,800,000	$2,800,000	$2,800,000
Estimated costs		1,600,000	2,000,000	2,000,000
Costs incurred to date (paid in cash)		400,000	900,000	2,000,000
Billed to date		250,000	1,150,000	2,800,000
Received in cash to date		190,000	950,000	2,800,000
Percentage of Completion (Revenue Recognized Over Time)
Question 1:
Calculate the gross profit booked in Year 1
Question 2:
Book the following journal entries for Year 1:
1) Record Costs Incurred
2) Record Billings on Contract
3) Record Payments Received
4) Record Revenue/Cost during Construction Period