In 2013, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2015. Information related to the contract is as follows:

Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.
Required:
1. Calculate the amount of gross profit to be recognized in each of the three years.
2. Prepare all necessary journal entries for each of the years (credit various accounts for construction costs incurred).
3. Prepare a partial balance sheet for 2013 and 2014 showing any items related to the contract.
4. Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information:

5. Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs incurred and costs to completeinformation:

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2013 2014 2015 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,400,000 3,600,000 $2,200,000 5,600,000 2,000,000 1,800,000 2,000,000 4,000,000 4,000,000 3,600,000 4,600,000 2013 2014 2015 Costs incurred during the year Estimated costs to complete as of year-end $2,400,000 $3,800,000 $3,200,000 3,100,000 5,600,000