In 2021, 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 2023. Information related to the contract is as follows:

202120222023

Cost incurred during the year$3,344,000$3,960,000$1,645,600

Estimated costs as of year-end5,456,0001,496,0000

Billings during the year2,800,0004,504,0002,696,000

Cash collections during the year2,600,0004,400,0003,000,000

Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.

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 2021 (credit "Various accounts" for construction costs incurred).

2-b.In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).

2-c.In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

3.Complete the information required below to prepare partial balance sheet for 2021 and 2022 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.

202120222023Cost incurred during the year$2,480,000$3,840,000$3,280,000Estimated costs to as of year-end5,680,0003,180,0000

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.

I am having difficulty understanding how to calculate the requirements for these questions. I continuously come up with different answers. I am confident that 2(A)(B)(C) are correct. The Revenue/Gross Profit are the areas I am having the most difficulty understanding.