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	$	2,511,000		$	3,645,000		$	2,138,400
Estimated costs to complete as of year-end		5,589,000			1,944,000			0
Billings during the year		2,100,000			4,056,000			3,844,000
Cash collections during the year		1,890,000			3,700,000			4,400,000

Westgate Construction uses the completed contract method of accounting for long-term construction contracts.

Required:

Please explain why the following answers are incorrect. (Please explain your answer)

3. eet for 2016 and 2017 Complete the information required below to prepare a partial balance sheet for 2016 and 2017 showing any items related to the contract. Answer is complete but not entirely correct. Balance Sheet (Partial) 2016 2017 Current assets 210,000 $356,000 Accounts receivable Construction in progress Less: Billings 2,511,000 S 6.156.00() ,16,000 $ 2,511,000 2,100,000 $411,000 Costs in excess of billings Current liabilities