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 2580000 4042000 2175800

estimated costs to compl as of year end 6020000 1978000 0

billings during the year 2060000 4562000 3378000

cash collections during the year 1830000 4200000 3970000

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

Required:

1.Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.(Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

***** 2018 2019 2020

revenue

Gross Profit (loss)

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

RECORD CONSTRUCTION COSTS

RECORD PROCESS BILLINGS

RECORD CASH COLLECTIONS

RECORD GROSS PROFIT (LOSS)

2-b. 2019In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).

RECORD CONSTRUCTION COSTS

RECORD PROCESS BILLINGS

RECORD CASH COLLECTIONS

RECORD GROSS PROFIT (LOSS)

2-c. 2020In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).

RECORD CONSTRUCTION COSTS

RECORD PROCESS BILLINGS

RECORD CASH COLLECTIONS

RECORD GROSS PROFIT (LOSS)

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

2018 2019

Current assets:

BLANK

BLANK

BLANK

BLANK

current liabilities:

BLANK

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.(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

cost incurred during the year 2580000 3830000 3230000

estimated cost to compl as of year-end 6020000 3130000 0

2018 2019 2020

REVENUE

CROSS PROFIT (LOSS)

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.(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

cost incurred during the year 2580000 3830000 3990000

estimated cost to comp as of year-end 6020000 4160000 0

2018 2019 2020

Revenue

Gross Profit