During 2025, Crane Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Compute the amount of gross profit to be recognized each year, assuming the percentage-of completion method is used.

Gross profit recognized in 2025

Gross profit recognized in 2026

Gross profit recognized in 2027

Prepare all necessary journal entries for 2026:

(To record the cost of construction)

(To record progress billings)

(To record collections)

(To recognize revenue)