P 6-10 Long-term contract; revenue recognition over 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: 2021 time LO6-8, LO6-9 Cost incurred during the year $2,400,000 2022 $3,600,000 2023 $2,200,000 Estimated costs to complete as of year-end Billings during the year 5,600,000 2,000,000 -0- 2,000,000 4,000,000 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit to be recognized in each of the three years. 2. Prepare all necessary journal entries for each of the years (credit "Cash, Materials, etc." for construction costs incurred). 3. Prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. Indicate whether any of the amounts shown are contruct assets or contract liabilities. 4. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the fol- lowing costs incurred and costs to complete information: Costs incurred during the year Estimated costs to complete as of year-end 2021 $2,400,000 5,600,000 2022 $3,800,000 3,100,000 2023 $3,200,000 -0- 5. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the fol- lowing costs incurred and costs to complete information: P 6-11 Long-term contract; revenue recognition upon completion L06-9 Costs incurred during the year Estimated costs to complete as of year-end 2021 2022 2023 $2,400,000 5,600,000 $3,800,000 4,100,000 $3,900,000 -0- [This is a variation of P 6-10 modified to focus on revenue recognition upon project completion.] Required: Complete the requirements of P 6-10 assuming that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.