29 In 2018, 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 2020. Information related to the contract is as follows: 2020 $2,569,600 Cost incurred during the year Estimated costs to complete as of year- end Billings during the year Cash collections during the year 2018 $1,679,000 5,621,000 1,300,000 1,100,000 2019 $3,285,000 2,336,000 3,664,000 2,900,000 6.13/6.66 points awarded 5,036,000 6,000,000 Scored Westgate Construction uses the completed contract method of accounting for long-term construction contracts. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts for construction costs incurred). 3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. Cost incurred during the year Estimated costs to complete as of year- end 2018 $2,570,000 5.270.000 2019 $3,885,000 3,270,000 2020 $3,270,000 0 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. 2018 $2,570,000 5,770,000 Cost incurred during the year Estimated costs to complete as of year- end 2019 $3,885,000 4,270,000 2020 $4,155,000 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following cost incurred and costs to complete information. 2018 $2,570,000 5,770,000 Cost incurred during the year Estimated costs to complete as of year- end 2019 $3,885,000 4,270,000 2020 $4,155,000 6.13/6.66 points awarded Scored Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Reg 2C Reg 3 Reg 4 Reg 5 In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Credit Date 2019 Debit 2,569,000 Construction in progress Various accounts 2,569,000 > 2019 5,036,000 Accounts receivable Billings on construction contract 5,036,000 3 / 2019 6,000,000 Cash Accounts receivable 6,000,000 2019 Cost of construction Construction in progress Revenue from long-term contracts 2,569,000 X 631,000 3,200,000 29 In 2018, 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 2020. Information related to the contract is as follows: 2020 $2,569,600 Cost incurred during the year Estimated costs to complete as of year- end Billings during the year Cash collections during the year 2018 $1,679,000 5,621,000 1,300,000 1,100,000 2019 $3,285,000 2,336,000 3,664,000 2,900,000 6.13/6.66 points awarded 5,036,000 6,000,000 Scored Westgate Construction uses the completed contract method of accounting for long-term construction contracts. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts for construction costs incurred). 3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. Cost incurred during the year Estimated costs to complete as of year- end 2018 $2,570,000 5.270.000 2019 $3,885,000 3,270,000 2020 $3,270,000 0 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. 2018 $2,570,000 5,770,000 Cost incurred during the year Estimated costs to complete as of year- end 2019 $3,885,000 4,270,000 2020 $4,155,000 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following cost incurred and costs to complete information. 2018 $2,570,000 5,770,000 Cost incurred during the year Estimated costs to complete as of year- end 2019 $3,885,000 4,270,000 2020 $4,155,000 6.13/6.66 points awarded Scored Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Reg 2C Reg 3 Reg 4 Reg 5 In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Credit Date 2019 Debit 2,569,000 Construction in progress Various accounts 2,569,000 > 2019 5,036,000 Accounts receivable Billings on construction contract 5,036,000 3 / 2019 6,000,000 Cash Accounts receivable 6,000,000 2019 Cost of construction Construction in progress Revenue from long-term contracts 2,569,000 X 631,000 3,200,000