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 inccured during the year	2,204,000	3,192,000	2,424,400
estimated costs to complete as of year-end	5,396,000	2,204,000	0
billings during the year	2,140,000	3,256,000	4,604,000
cash collections during the year	1,870,000	3,200,000	4,930,000

Required:

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

2a.

In the journal below, complete the necessary journal entries for the year 2016 (credit "Various accounts" for construction costs incurred).

2b.

In the journal below, complete the necessary journal entries for the year 2017 (credit "Various accounts" for construction costs incurred).

2c.

In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred)

3.

Complete the information required below to prepare a partial balance sheet for 2016 and 2017 showing any items related to the contract. Indicate whether any of the amounts shown are contract assets or contract liabilities.

4.

Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

5.	Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information.