Assume that Westgate Constructions contract with Santa Clara County does not qualify for revenue recognition over time.

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 2024 (credit Cash, Materials, etc. for construction costs incurred).

	2024	2025	2026
Cost incurred during the year	$ 2,580,000	$ 3,890,000	$ 3,280,000
Estimated costs to complete as of year-end	5,780,000	3,280,000	0

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the gross profit (loss). Note: Enter debits before credits. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the gross profit (loss). Note: Enter debits before credits