In 2013, 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 2015. Information related to the contract is as follows:

	2013			2014			2015
Cost incurred during the year	$	2,856,000		$	3,780,000		$	1,940,400
Estimated costs to complete as of year-end		5,544,000			1,764,000			0
Billings during the year		2,400,000			4,236,000			3,364,000
Cash collections during the year		2,160,000			4,000,000			3,840,000

Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.

Required:

1.		Calculate the amount of gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. (2013, 2014, 2015???)

2.1

In the journal below, complete the necessary journal entries for the year 2013 (credit various accountsfor construction costs incurred). (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations.

Journal Entry Worksheet

1. Record constraction cost?

2. Record progress billings

3. Cash collection

4. Gross Profit

2.2		In the journal below, complete the necessary journal entries for the year 2014 (credit various accountsfor construction costs incurred). (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

Journal Entry Worksheet

1. Record constraction cost?

2. Record progress billings

3. Cash collection

4. Gross Profit

2.3

In the journal below, complete the necessary journal entries for the year 2015 (credit various accountsfor construction costs incurred). (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations.) ( the same 1-4???)

3.

Complete the information required below to prepare a partial balance sheet for 2013 and 2014 showing any items related to the contract. (Do not round intermediate calculations.) (current asset 2013, 2014)

4.		Calculate the amount of gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations.)

	2013			2014			2015
Costs incurred during the year	$	2,440,000		$	3,820,000		$	3,240,000
Estimated costs to complete as of year-end		5,640,000			3,140,000			0

5.	Calculate the amount of gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations.)

	2013			2014			2015
Costs incurred during the year	$	2,440,000		$	3,820,000		$	3,960,000
Estimated costs to complete as of year-end		5,640,000			4,140,000			0