2a and 2b have been completed
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 $1,797,400 Cont incurred during the year Estimated costs to complete as of year- end Billings during the year Cash collections during the year 2018 $3,096,000 5,504,000 2,600,000 2,400,000 2019 $3,870,000 1,634,000 4,366,000 4,200,000 3,034,000 3,400,000 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 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the thre certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign 2018 2019 2020 Revenue 10,000,000 Gross profit (loss) 1,236,600 Req 2A > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Reg 2B Req 2c R eq3 Reg 5 In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts for construction c incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Credit Date 2020 General Journal Construction in progress Various accounts Debit 1,797,400 1.797,400 2020 3,034,000 Accounts receivable Billings on construction contract 3,034,000 2020 3,400,000 Cash Accounts receivable 3,400,000 2020 Construction in progress Cost of construction Revenue from long-term contracts Req3 > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req4 Req5 Complete the information required below to prepare a parti I balance sheet for 2018 and 2019 showing any items the contract. 2019 Balance Sheet (Partial) 333EE2018 Current assets: Accounts receivable Construction in progress Less: Billings Costs in excess of billings Current liabilities: 69 $ 0 I / / Reg 2c Req4
