On March 1, 2012, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. 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 2014.

  (c) Prepare a partial balance sheet for December 31, 2013, showing the balances in the receivables and inventory accounts.