Required information

[The following information applies to the questions displayed below.] In 2018, 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 2020. Information related to the contract is as follows:

	2018			2019			2020
Cost incurred during the year	$	2,072,000		$	2,738,000		$	2,849,000
Estimated costs to complete as of year-end		5,328,000			2,590,000			0
Billings during the year		2,160,000			2,650,000			5,190,000
Cash collections during the year		1,880,000			2,700,000			5,420,000

Westgate recognizes revenue over time according to percentage of completion.

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)

Balance Sheet (Partial)	2018		2019
Current assets:
Accounts receivableselected answer correct		not attempted		not attempted
Construction in progressselected answer correct	not attempted		not attempted
Less: Billingsselected answer correct	not attempted		not attempted
Costs and profit in excess of billingsselected answer correct		0		0
Current liabilities:
Note receivableselected answer incorrect		not attempted

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

	2018			2019			2020
Cost incurred during the year	$	2,072,000		$	3,880,000		$	3,280,000
Estimated costs to complete as of year-end		5,328,000			3,180,000			0

	2018	2019	2020
Revenue	not attempted	not attempted	not attempted
Gross profit (loss)	not attempted	not attempted

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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

	2018			2019			2020
Cost incurred during the year	$	2,072,000		$	3,880,000		$	4,140,000
Estimated costs to complete as of year-end		5,328,000			4,260,000			0

	2018	2019	2020
Revenue	$2,800,000selected answer correct	not attempted	not attempted
Gross profit (loss)	not attempted	not attempted