P5-10 Long-term contract, revenue In 2018, the Westgate Construction Counpany entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information relate to the contract is as follows: 2018 2019 2020 Cost incurred during the ear Estimated costs to compiate as of year-end Billings during the yoar Cash collections during the year me $2,400,000 5,600,000 2,000,000 1,800,000 $3,600,000o 2,000,000 4,000,000 3,600,000 $2,200,000 LOS-8, LO5-9 4,000,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. 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 (eredit "various accounts" for construction costs incurred) any of the amounts shown are contract assets or contract liabilities. following costs incurred and costs to complete information: 3. Prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. Indicate whether 4. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the 2018 2019 $3,800,000 3,100,000 2020 Costs incurred during the year Estimated costs to complete as of year-end $2,400,00o 5,600,000 $3,200,000 nt 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: 2018 2019 2020 $2,400,000 $3,800,000 4,100,000 $3,900,000 Costs incurred during the year Estimated costs to complete as of year-end5,600,000 P5-11 [This is a variation of P 5-10 modified to focus on revenue recognition upon project completion.) Required: Complete the requirements of P 3-10 assuming that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. upon completion LOS-9