Assume that Joey Company contracted with a customer to provide Internet Infrastructure at a contract price of $2,000,000. The project began in 2014 and was completed in 2015. Data relating to this contract are provided below:

	2014	2015
Costs incurred during the year	$300,000	$1,575,000
Estimated Costs to Complete as of 12/31	$1,200,000	-0-
Billings during the year	$380,000	$1,620,000
Cash Collections During the year	$250,000	$1,750,000

Required:

1) Compute the amount of Gross Profit or Loss to be recognized in 2014 and 2015 using the percentage-of-completion method.

2). Prepare the journal entry(s) that Joey Company would record during 2014.

3). Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2014 using the percentage-of-completion method.