Arizona Desert Homes (ADH) constructed a new subdivision during 2015 and 2016 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$2,865,000
Cost:	2015	1,170,000
	2016	570,000
Gross profit:	2015	755,000
	2016	370,000
Contract billings:	2015	1,432,500
	2016	1,432,500

ADH recognizes revenue upon completion of the contract.

What is the journal entry in 2016 to record revenue?

Cost of construction	1,925,000
Gross profit	940,000
Revenue from long-term contracts		2,865,000

Construction in progress	370,000
Cost of construction	570,000
Revenue from long-term contracts		940,000

Construction in progress	1,125,000
Cost of construction	1,740,000
Revenue from long-term contracts		2,865,000

Accounts receivable	1,432,500
Revenue from long-term contracts		1,432,500

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