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3 E18-15 (Recognition of Profit, Percentage-of-Completion) In 2014, Gurney Construction Company agreed to construct an apartment building at a price of $1,200,000. The information relating to the costs and billings for this contract is shown below. 2014 2015 2016 $ 785,000 Costs incurred to date Estimated costs yet to be incurred Customer billings to date Collection of billings to date $280,000 520,000 150,000 120,000 $600,000 200,000 500,000 320,000 1,200,000 940,000 Exercises 1093 Instructions (a) Assuming that the percentage-of-completion method is used, (1) compute the amount of gross profit to be recognized in 2014 and 2015, and (2) prepare journal entries for 2015. (b) For 2015, show how the details related to this construction contract would be disclosed on the balance sheet and on the income statement