Problem 5-10 Long-term contract; revenue recognition over time [LOB-8, 5-9] In 2018, the 1I.I'I."estgate 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: 2010 2010 2020 Cost incurred during the year $2,204,000 $3,192,000 $2,424,400 Estimated costs to complete as of year-end 5,396,000 2,204,000 0 Billings during the year 2,140,000 3,256,000 4,604,000 Cash collections during the year 1,320,000 3,200,000 4,930,000 ' Westgate recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross prot {loss} to be recognized in each of the three years. 2-3. In thejournal below, complete the necessaryjournal entries for the year 2018 [credit "Various accounts" for construction costs incurred]. 2-b. In the journal below, complete the necessaryjournal entries for the year 2010 {credit "Various accounts\" for construction costs incurred]. 2-1:. In the journal below. complete the necessaryjournal entries for the year 2020 {credit "Various accounts\" for construction costs incurred]. 3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 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. 2010 2019 2020 Cost incurred during the year $2,204,000 $3,020,000 $3,220,000 Estimated costs to complete as of year-end 5,396,000 3,120,000 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. 2018 2019 2020 Cost incurred during the year $2,204,000 $3,020,000 $4,110,000 Estimated costs to complete as of year-end 5,396,000 4,240,000 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. 2018 2015 2020 Cost. incurred during the year $2,204,000 $3,030,000 $4,110,000 Estimated costs to complete as of year-end 5,396,000 4,240,000 0 Complete this question by enterlng your answers In the tells below. Calculate the amount of revenue and gross prot (loss) to be recognized in each of the three 1years assuming the following costs incurred and costs to complete information. {Do not round intermediate calculations and round your nal answers tr nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2 900 000 3 0m T49 3 420 251 Gross prot [loss] 0 090.000 192,735
