asle Insert Footnote Show NotesLookup SmatResearcherCitation Insertopadte CitationiblographyCa bliographyCaption Cros reference Mark Entry Mark Citation Footnotes Research Citations & Bibliography ndex Table of Authorities P 5-10 Long-term contract; revenue recognition over time LOS 8, LO5 9 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: 2018 2019 2020 $2,400,000 $3,600,000 $2,200,000 Cost incurred during the year Estimated costs to complete as of year-end 5,600,000 2,000,000 Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 2,000,000 4,000,000 4,000,000 1,800,000 3,600,000 4,600,000 Reanired: Required: 1. Calculate the amount of revenue and gross profit to be recognized in each of the three years. Prepare all necessary journal entries for each of the years (credit "various accounts" for construction costs incurred). 2. Prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. Indicate whether any of the amounts shown are contract assets or contract liabilities. 3. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information: 4. 2018 $2,400,000 $3,800,000S 3,200,000 2019 2020 Costs incurred during the year Estimated costs to complete as of year-end 5,600,000 3,100,0000- 5. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information: 2018 2019 2020 Costs incurred during the year $2,400,000 S3,800,000 $3,900,000 Estimated costs to complete as of year-end 5,600,000 4,100,000 0