In 2014, Bogus, Inc. entered into a contract to construct a building for Martin & Lewis, Inc. at a cost of $10,000,000. The building was completed in 2016. Contract information is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2014 $2,640,000 6,160,000 3,000,000 2,700,000 2015 $2,840,000 4,570,000 3,000,000 2,900,000 2016 $4,500,000 -0- 4,000,000 4,400,000 Bogus uses the percentage of completion method of accounting for long-term construction contracts. Required: 1. Calculate the amount of gross profit to be recognized in each of the three years. 2. Prepare all necessary journal entries for each of the three years. 3. Prepare a partial balance sheet for Bogus for 2014 and 2015 showing any items related to the contract.