Chapter 6, #5

In 2021, 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 2023. Information related to the contract is as follows:

	2021			2022			2023
Cost incurred during the year	$	2,542,000		$	3,772,000		$	2,074,600
Estimated costs to complete as of year-end		5,658,000			1,886,000			0
Billings during the year		2,020,000			4,294,000			3,686,000
Cash collections during the year		1,810,000			3,800,000			4,390,000

Westgate recognizes revenue over time according to percentage of completion.

Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

	2021	2022	2023
Revenue
Gross profit(loss)