In $2024,$ 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 $2026.$ Information related to the contract is as follows:

Cost incurred during the year

Estimated costs to complete as of year$-$end

Billings during the year

Cash collections during the year

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

Required:

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$).$

$2-$b$.$ In the journal below, complete the necessary journal entries for the year $2025($credit "Cash, Materials, etc." for

construction costs incurred$).$

$2-$c$.$ In the journal below, complete the necessary journal entries for the year $2026($credit "Cash, Materials, etc." for

construction costs incurred$).$

Complete the information required below to prepare a partial balance sheet for $2024$ and $2025$ showing any items related

to the contract.

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

$2024$

$$2,400,000$

$5,600,000$

$2025$ $$3,800,000$

$3,100,000$

$2026$

$$3,200,000$

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

$$2,400,000$

$2025$

$2026$

$5,600,000,4,100,000$

$$3,900,000$

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