Curtiss Construction Company, Incorporated, entered into a fixed$-$price contract with Axelrod Associates on July $1,2024,$ to construct a four$-$story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $$4,600,000.$ The building was completed on December $31,2026.$ Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows:

At $12-31-2024$ At $12-31-2025$ At $12-31-2026$

Percentage of completion $10\%60\%100\%$

Costs incurred to date $ $369,000$ $ $2,940,000$ $ $4,960,000$

Estimated costs to complete $3,321,0001,960,0000$

Billings to Axelrod, to date $730,0002,370,0004,600,000$

Required:

Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time.

Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years.

Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of $2024$ and $2025$ as either cost in excess of billings or billings in excess of costs.The investment in equity securities account includes an investment in common stock of another corporation of $$34,000$ which

management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.

The land account includes land which cost $$29,000$ that the company has not used and is currently listed for sale.

The cash account includes $$19,000$ restricted in a fund to pay bonds payable that mature in $2027$ and $$27,000$ restricted in a

three$-$month Treasury bill.

The notes payable account consists of the following:

a$.$ a $$34,000$ note due in six months.

b$.$ a $$54,000$ note due in six years.

c$.$ a $$54,000$ note due in five annual installments of $$10,800$ each, with the next installment due February $15,2025.$

The $$64,000$ balance in accounts receivable is net of an allowance for uncollectible accounts of $$6,000.$

$6.$ The common stock account represents $104,000$ shares of no par value common stock issued and outstanding. The corporation

has $600,000$ shares authorized.

Required:

Prepare a classified balance sheet for the Almway Corporation at December $31,2024.$

Note: Amounts to be deducted should be indicated by a minus sign.