In 2018, 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 2020. Information related to the contract is as follows: 2018. 2019 2020

Cost incurred during the year $2,624,000 $3,690,000 $2,074,600

Estimated costs to complete as of year-end 5,576,000 1,886,000 0

Billings during the year 2,200,000 4,114,000 3,686,000

Cash collections during the year 2,000,000 3,800,000 4,200,000

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

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).