Problem 6-11 (Algo) Long-term contract; revenue recognition upon completion [LO6-9] 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: Cost incurred during the year 2024 $ 2,184,000 2025 $3,510,000 2026 $ 2,316,600 5,616,000 1,800,000 2,106,000. 1,600,000 Estimated costs to complete as of year-end Billings during the year Cash collections during the year 3,894,000 3,400,000 4,306,000 5,000,000 Assume that Westgate Construction's 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). contract 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the 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. Cost incurred during the year Estimated costs to complete as of year-end- 2024 $ 2,520,000 5,720,000 2025 $ 3,860,000 3,220,000 2026 $ 3,220,000 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. Cost Incurred during the year Estimated costs to complete as of year-end 2024 2025 $ 2,520,000 5,720,000 $ 3,860,000 2026 $4,080,000 4,220,000 Req 1 Req 2A Req 2B Req 2C Req 3. Req 4 Req 5 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. 2024 2025 2026 Revenue Gross profit (loss) Req 1 Req 2A > Journal entry worksheet < 1 2 3 4 Record the construction costs. Note: Enter debits before credits. Date 2024 General Journal Debit Credit. Record entry Clear entry View general journal Journal entry worksheet < 1 3 4 Record the progress billings. Note: Enter debits before credits. Date 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the cash collections. Note: Enter debits before credits. Date 2024 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 JA Record the gross profit (loss). Note: Enter debits before credits. Date 2024 General Journal Debit Credit Record entry Clear entry View general journal Balance Sheet (Partial) 2024 2025 Current assets: Current liabilities: $ 0 $ 0 0 < Req 2C Req 4 > $ 0 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. Revenue Gross profit (loss) 2024 2025 2026 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. Revenue Gross profit (loss) 2024 2025 2026