Ingalls Construction Associates accepted a contract to build an office building on January 2, 2022. The company will complete the contract within two years. Ingalls 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 Ingalls uses the completed-contract method (show all supporting computations). Complete the following table to compute gross profit for the year 2023. Revenue from long-term contracts Costs of construction Gross profit 2023 Contract Information $ 4,080,000 Contract price 2022 2023 Actual construction costs incurred during the year Construction costs incurred in prior years $ 2,495,650 $ 0 Cumulative construction costs incurred to date 2,495,050 950,000 2,495,650 3,445,650 Essmated costs to complete 1,019,350 0 Estimated total costs Progress billings made during the year Cash collections during the year 3,515,000 3,445,650 2,450,000 1,630,000 2,040,000 2,040,000 Print Done X