P18-3B (Recognition of Profit and Entries on Long-Term Contract) On July 1, 2014, Jiaqian Company entered into a contract to build an apartment building. It is estimated that the building will cost $6,000,000 and will take 3 years to complete. The contract price was $7,800,000. The following information pertains to the construction period. Instructions (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (b) Prepare all necessary journal entries for 2016. (c) Prepare a partial balance sheet for December 31, 2015, showing the balances in the receivables and inventory accounts. P18-3B (Recognition of Profit and Entries on Long-Term Contract) On July 1, 2014, Jiaqian Company entered into a contract to build an apartment building. It is estimated that the building will cost $6,000,000 and will take 3 years to complete. The contract price was $7,800,000. The following information pertains to the construction period. Instructions (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (b) Prepare all necessary journal entries for 2016. (c) Prepare a partial balance sheet for December 31, 2015, showing the balances in the receivables and inventory accounts