Problem 8: Revenue Recognition - Percentage of Completion (16 points): In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $20 million. The road was completed in 2023. Westgate uses percentageof-completion method to account for this project. Information related to the contract for the first two years is as follows:

Required: 1. Compute the amounts of revenue and gross profit (or loss) to be recognized in 2021 and 2022. Please clearly label whether it is a profit or loss. Show vour work. (8 pts) 2.Prepare the journal entry to recognize construction revenue of 2021 . (3 pts) 3.Prepare the partial balance sheet at the end of 2022 using the percentage-of-completion method. Write n/a if the account is not used. (5 pts )