percentage-of-completion method

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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.)

Account Titles and Explanation

Debit

Credit

 
     
  
 
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