Problem 6-11 (Algo) Long-term contract; revenue recognition upon completion (LO6-9) 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: 2023 $1,797,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $3,096,000 5,504,000 2,600,000 2,400,000 2022 $3,870,000 1,634,000 4,366,000 4,200,000 3,034,000 3,400,000 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 2021 (credit "Various accounts for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts for construction costs incurred). 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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. 2021 2022 2023 Cost incurred during the year $2,460,000 $3,830,000 $3,260,000 Estimated costs to complete as of 5,660,000 3,160,000 year-end 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. 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following co incurred and costs to complete information. 2021 $2,460,000 5,660,000 Cost incurred during the year Estimated costs to complete as of year-end 2022 $3,830,000 4,160,000 2023 $3,990,000 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) Show less A 2021 Revenue Gross profit (loss) 3,600,000 $ 504,000 2022 2023 4.500.000X $ 1,900,000 X $ 630,000 $ 102,600X Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req3 Req 4 Req 5 In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show lessA No Date Credit General Journal Construction in progress Various accounts Debit 3,096,000 2021 3,096,000 2021 2,600,000 Accounts receivable Billings on construction contract 2,600,000 3 / 2021 Cash 2,400,000 686 OGO Accounts receivable 2,400,000 2021 X Cost of construction Construction in progress Notes receivable 3,096,000 X 504,000 X 3,600,000 X X Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Req 2A Req 2B Req 20 Req 3 Req 4 Req 5 In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Show less A No Date Credit General Journal Construction in progress Various accounts Debit 3,870,000 2022 3,870,000 2022 4,366,000 Accounts receivable Billings on construction contract 4,366,000 2022 4,200,000 Cash Accounts receivable 4,200,000 2022 3,870,000 X Cost of construction Construction in progress Notes payable 3 630,000 x 4,500,000 X X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 4 Req 20 Req3 Req 4 Req 5 Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. 2021 2022 Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings 0 0 Current liabilities: $ 0 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req3 Req 4 Req 5 I Rega | Reas Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) Show less 2021 2022 2023 Revenue Gross profit (loss) X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Reg 3 Req 4 Req 5 zed in each reinthe tree years using Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) Show less A 2021 2022 2023 Revenue Gross profit (loss)