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in 2012 gurney construction company agreed to construct an apartment building at a p 394322

In 2012, 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.

2012 2013 2014
Costs incurred to date $280,000 $600,000 $ ?785,000
Estimated costs yet to be incurred 520,000 200,000 –0–
Customer billings to date 150,000 500,000 1,200,000
Collection of billings to date 120,000 320,000 940,000

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(a) Assuming that the percentage of completion method is used, (1) compute the amount of gross profit to be recognized in 2012 and 2013, and (2) prepare journal entries for 2013.
(b) For 2013, show how the details related to this construction contract would be disclosed on the balance sheet and on the i
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