During $2025,$ Sandhill Company started a construction job with a contract price of $$1,580,000.$ The job was completed in $2027.$ The Prepare all necessary journal entries for $2026.($Credit account titles are automatically indented when amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. For costs incurred use account

Materials, Cash, Payables. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record cost of construction.$)$

$($To record progress billings.$)$

$($To record collections.$)$

$($To recognize revenue.$)$ Compute the amount of gross profit to be recognized each year, assuming the cost$-$recovery method is used.

following information is available.

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

Gross profit recognized in $2025,$$

Gross profit recognized in $2026,$$

Gross profit recognized in $2027,$$

Prepare all necessary journal entries for $2026.$

Compute the amount of gross profit to be recognized each year, assuming the cost$-$recovery method is used.

$2025$

$2026$

$2027$

Gross profit

$

$

$