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	$	2,059,000		$	2,627,000		$	2,655,400
Estimated costs to complete as of year-end		5,041,000			2,414,000			0
Billings during the year		2,190,000			2,496,000			5,314,000
Cash collections during the year		1,895,000			2,400,000			5,705,000

Westgate recognizes revenue over time according to percentage of completion. Required: 1. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.

2. 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

$

2,059,000

$

3,895,000

$

4,185,000

Estimated costs to complete as of year-end

5,041,000

4,290,000

0

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

	2018	2019	2020
Revenue	$2,900,000	$2,912,182	$4,187,818
Gross profit (loss)	$841,000

Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)

Balance Sheet (Partial)	2018		2019
Current assets:
Accounts receivable		$295,000		$391,000
Construction in progress	$2,900,000
Less: Billings	2,190,000
Costs and profit in excess of billings		710,000		0
Current liabilities: