McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2020 and completed

McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2020 and completed in 2021. Cost and other data are presented below:

2020 2021
Costs incurred during the year $1,500,000 $1,300,000
Estimated costs to complete 1,200,000 0
Billings during the year 1,200,000 1,300,000
Cash collections during the year 1,000,000 1,500,000
Assume that McCombs recognizes revenue upon project completion.
a. What is the amount of gross profit recognized during 2020 and 2021?
b. Prepare all journal entries to record costs, billings, collections, and profit recognition.
c. What is the amount of gross profit recognized during 2020 and 2021?

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