In 2014, Gurney Construction Company agreed to construct an apartment building at a price of $1,722,000. The information relating to...

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In 2014, Gurney Construction Company agreed to construct an apartment building at a price of $1,722,000. The information relating to the costs and billings for this contract is shown below.

  
2014
 
2015
 
2016
Costs incurred to date $405,285 $751,260 $1,100,000
Estimated costs yet to be incurred 583,215 237,240 –0–
Customer billings to date 303,400 856,300 1,722,000
Collection of billings to date 260,100 708,600 1,451,000


(a) Assuming that the percentage-of-completion method is used.

(1) compute the amount of gross profit to be recognized in 2014 and 2015.

Gross profit to be recognized in 2014 
$Entry field with incorrect answer now contains modified data[removed]706020
Gross profit to be recognized in 2015 
$Entry field with incorrect answer now contains modified data[removed]602700


(2) prepare journal entries for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables.)

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