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:On February $1,2024,$ Arrow Construction Company entered into a three$-$year construction contract to build a bridge for a price of

$$8,330,000.$ During $2024,$ costs of $$2,110,000$ were incurred with estimated costs of $$4,110,000$ yet to be incurred. Billings of

$$2,610,000$ were sent, and cash collected was $$2,360,000.$

In $2025,$ costs incurred were $$2,610,000$ with remaining costs estimated to be $$3,765,000\mathrm{.}2025$ billings were $$2,860,000,$ and

$$2,585,000$ cash was collected. The project was completed in $2026$ after additional costs of $$3,910,000$ were incurred. The

company's fiscal year$-$end is December $31.$ Arrow recognizes revenue over time according to percentage of completion.

Required:

Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.

$2$a$.$ Prepare journal entries for $2024$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$2$b$.$ Prepare journal entries for $2025$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$3$a$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2024.$

$3$b$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2025.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $3A$

Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.

Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to the nearest

whole dollar.

$202420252026$

Cost incurred during the year $ $2,604,000$ $ $4,032,000$ $ $1,940,400$

Estimated costs to complete as of year$-$end $5,796,0001,764,0000$

Billings during the year $2,040,0004,596,0003,364,000$

Cash collections during the year $1,820,0004,000,0004,180,000$

Westgate recognizes revenue over time according to percentage of completion.

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