In 2016, 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 2018. Information related to the contract is as follows:

	2016	2017	2018
Cost incurred during the year	$2,072,000	$2,738,000	$2,849,000
Estimated costs to complete as of year-end	$5,328,000	$2,590,000	0
Billings during the year	$2,160,000	$2,650,000	$5,190,000
Cash collections during the year	$1,880,000	$2,700,000	$5,420,000

Westgate recognizes revenue over time according to percentage of completion.

Required:

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

	2016	2017	2018
Revenue
Gross profit (loss)

In the journal below, complete the necessary journal entries for the year 2016 (credit Various Accounts for construction costs incurred). (If no entry is required for a transaction/event, No journal entry required).

Record construction costs

Record progress billings

Record Cash Collections

Record Gross Profit