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In: AccountingLong?term contract based onpercentage of completion methodJim’s Construction Co. has a$6,800,000 contract which...Long?term contract based onpercentage of completion methodJim’s Construction Co. has a$6,800,000 contract which began on January 1, 2015 to build a newfootball stadium with an expected completion date of October 31,2017. The following table provides information gathered during theconstruction period. Jim uses the percentage completion methodtoaccount for this contract. 201520162017Construction costs incurred during the year2,040,0002,932,5001,657,500Estimated costs to complete3,060,0001,657,5000Billings during the year1,360,0001,632,0003,808,000Cash collected during year1,020,0001,360,0004,080,000Prepare journal entry to record gross profit for2015Prepare all necessary journal entries for2016.********I would like to know the steps to soving these 2questions*************