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:

201820192020Cost incurred during the year$1,976,000$3,420,000$2,424,400Estimated costs toof year-end5,624,0002,204,0000Billings during the year1,600,0003,796,0004,604,000Cash collections during the year1,400,0003,200,0005,400,000

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).

3.Complete the information required below to 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.

201820192020Cost incurred during the year$2,540,000$3,870,000$3,240,000Estimated costs to of year-end5,740,0003,240,0000

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.

201820192020Cost incurred during the year$2,540,000$3,870,000$4,110,000Estimated costs to of year-end5,740,0004,240,0000

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