Penner Builders contracted to build a high-rise for $27,000,000. Construction began in 2014 and is expected to be completed in 2017. Data for 2014 and 2015 are:
2014
2015
Costs incurred to date
$3,500,000
$9,880,000
Estimated costs to complete
14,000,000
9,120,000
Penner uses the percentage-of-completion method.
How much gross profit should be reported for 2014?
Gross profit
$
Warning
How much gross profit should be reported for 2015?
Gross profit
$
Make the journal entry to record the revenue and gross profit for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)