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During $2023,$ Cullumber Company started a construction job with a contract price of $$1,984,000.$ The job was completed in $2025.$ The

following information is available. The contract is non$-$cancellable.

$($a$)$

Your answer is correct.

Calculate the amount of gross profit to be recognized each year, assuming the percentage$-$of$-$completion method is used. $($Enter

negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$ Your answer is partially correct.

Prepare all necessary journal entries for $2024.($Use Materials, Cash, Payables for costs incurred to date.$)($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Contract Asset$/$Liability

Materials, Cash, Payables

$($To record cost of construction$)$

Accounts Receivable

Contract Asset$/$Liability

$($To record progress billings$)$

Accounts Receivable

$($To record collections$)$

Contract Asset$/$Liability