2. (8 points) In 2024, 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 2026. Information related to the contract is as follows: Cost incurred during the year Billings during the year 2024 Estimated costs to complete as of year-end 5,328,000 Cash collections during the year $ 2,072,000 2,160,000 1,880,000 2025 $ 2,738,000 2,590,000 2,650,000 2,700,000 2026 $ 2,849,000 0 5,190,000 5,420,000 Westgate recognizes revenue over time according to percentage of completion. Prepare all journal entries necessary to reflect the billings, collections, and revenue recognition for all three years. Also, record the entry to close out the CIP and Billings accounts at the end of the contract in 2026.

2. (8 points) In 2024 , 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 2026 . Information related to the contract is as follows: Westgate recognizes revenue over time according to percentage of completion. Prepare all journal entries necessary to reflect the billings, collections, and revenue recognition for all three years. Also, record the entry to close out the CIP and Billings accounts at the end of the contract in 2026