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:

$202420252026$

Cost incurred during the year $ $1,400,000$ $ $3,150,000$ $ $2,695,000$

Estimated costs to complete as of year$-$end $5,600,0002,450,0000$

Billings during the year $1,000,0003,550,0005,450,000$

Cash collections during the year $800,0002,600,0006,600,000$

Assume that Westgate Construction$$s 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$).$

$2-$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$).$

$3.$ Complete the information required below to prepare a partial balance sheet for $2024$ and $2025$ showing any items related to the contract.

$4.$ 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.

$202420252026$

Cost incurred during the year $ $2,600,000$ $ $3,900,000$ $ $3,300,000$

Estimated costs to complete as of year$-$end $5,800,0003,300,0000$

$5.$ 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.

$202420252026$

Cost incurred during the year $ $2,600,000$ $ $3,900,000$ $ $4,200,000$

Estimated costs to complete as of year$-$end $5,800,0004,300,0000$