Gary Construction Associates accepted a contract to build an office building on January 2, 2015. The company will complete the contract within two years. Gary provided the following information related to the revenue, estimated costs, progress billings, and collections over the two-year period. (Click the icon to view the contract information.) Requirement Prepare the journal entries for each year to record the contract assuming that Gary uses the completed-contract method (show all supporting computations). Complete the following table to compute gross profit for the year 2016 2016 Revenue from long-term contracts Costs of construction Gross profit Contract Information - X S 4,000,000 Contract price S S Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs Progress billings made during the year Cash collections during the year 2015 2,625,000 $ OS 2,625,000 $ 875,000 3,500,000 $ 2,400,000 $ 2,000,000 $ 2016 900,000 2,625,000 3,525,000 0 3,525,000 1,600,000 2,000,000 S S S Print Done