In 2024, 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 2026. Information related to the contract is as follows:

202420252026Cost incurred during the year$ 2,100,000$ 2,450,000$ 2,695,000Estimated costs to complete as of year-end4,900,0002,450,0000Billings during the year2,200,0002,350,0005,450,000Cash collections during the year1,900,0002,300,0005,800,000

Westgate recognizes revenue over time according to percentage of completion.

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.

2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit Cash, Materials, etc. for construction costs incurred).

2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit Cash, Materials, etc. for construction costs incurred).

2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit Cash, Materials, etc. for construction costs incurred).

3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract.