P 5-10 Long-term contract; revenue recognition over time 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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2018 S 2,400,000 2019 2020 S S 2,200,000 0 3,600,000 5,600,000 2,000,000 2,000,000 4,000,000 4,000,000 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to the percentage of completion. Required: 1. Calculate the amount of gross profit to be recognized in each of the three years. 2. Prepare all necessary journal entries for each of the years (credit "various accounts" for construction costs incurred). 3. Prepare a partial statement of financial position for 2018 and 2019 showing any items related to the contract.