The Forman Company has contracted to build a dam over a period of 4 years for $3,000,000. Information relating to the performance of the contract is summarized as follows:

2014 2015 2016 2017

Construction costs incurred $300,000 $1,100,000 $863,000 $800,000

during the year

Estimated costs to complete 2,200,000 1,500,000 837,000 -0-

the contract (at 12/31)

Billings during the year 280,000 870,000 1,030,000 820,000

Collections during the year 270,000 875,000 1,010,000 845,000

Using the percentage-of-completion method, provide the journal entries to record the profit or loss to be recognized as a result of this contract for the years ended December 31, 2016 and 2017. Also show the 2017 journal entry to close the balance sheet accounts at the end of the contract, and the journal entry to record 2016 profit or loss.