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:

	2024	2025	2026
Cost incurred during the year	$ 1,400,000	$ 3,150,000	$ 2,695,000
Estimated costs to complete as of year-end	5,600,000	2,450,000	0
Billings during the year	1,000,000	3,550,000	5,450,000
Cash collections during the year	800,000	2,600,000	6,600,000

Assume that Westgate Constructions 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 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.

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.

	2024	2025	2026
Cost incurred during the year	$ 2,600,000	$ 3,900,000	$ 3,300,000
Estimated costs to complete as of year-end	5,800,000	3,300,000	0

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.

	2024	2025	2026
Cost incurred during the year	$ 2,600,000	$ 3,900,000	$ 4,200,000
Estimated costs to complete as of year-end	5,800,000	4,300,000	0

Complete this question by entering your answers in the tabs below. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. Journal entry worksheet Note: Enter debits before credits. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits betore credits. in the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs ncurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. in the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs ncurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the gross profit (loss). Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Leave no cells blank - be certain to enter " 0 " wherever required. Loss amounts should be indicated with a minus sign. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the construction costs. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 4 Note: Enter debits betore credits