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	$	2,550,000		$	4,250,000		$	1,870,000
Estimated costs to complete as of year-end		5,950,000			1,700,000			0
Billings during the year		2,050,000			4,750,000			3,200,000
Cash collections during the year		1,825,000			4,100,000			4,075,000

Westgate recognizes revenue over time according to percentage of completion.

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

	2018			2019			2020
Cost incurred during the year	$	2,550,000		$	3,825,000		$	3,225,000
Estimated costs to complete as of year-end		5,950,000			3,125,000			0

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

	2018			2019			2020
Cost incurred during the year	$	2,550,000		$	3,825,000		$	3,975,000
Estimated costs to complete as of year-end		5,950,000			4,150,000			0

Requirement 3

Balance Sheet (Partial)	2018		2019
Current assets:
		0		0
Current liabilities:

Requirement 4

	2018	2019	2020
Revenue
Gross profit (loss)

Requirement 5

	2018	2019	2020
Revenue
Gross profit (loss)