3 E183 (Recognition of Profit, Percentage-of-Completion) In 2010, Gurney Construction Company agreed to construct an apartment building at a price of $1,200,000. The information relating to the costs and billings for this contract is shown below. 2010 2011 2012 Costs incurred to date $280,000 $600,000 $ 785,000 Estimated costs yet to be incurred 520,000 200,000 -0- Customer billings to date 150,000 500,000 1.200,000 Collection of billings to date 120,000 320,000 940,000 Instructions (a) Assuming that the percentage-of-completion method is used, (1) compute the amount of gross profit to be recognized in 2010 and 2011, and (2) prepare journal entries for 2011. (b) For 2011, show how the details related to this construction contract would be disclosed on the statement of financial position and on the income statement. o