Required information [The following information applies to the questions displayed below.) 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 $2,424,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,204,000 5,396,000 2,140,000 1,870,000 2022 53,192,000 2,204,000 3,256,000 3,200,000 4,604,000 4,930,000 Westgate recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.) Revenue Gross profit (loss) $ $ 2021 2,900,000 $ 696,000 $ 2022 4,200,000 $ 1,008,000 $ 2023 2,900,000 475,600 Reg 2A Req 2B Req 2C 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.) View transaction list View journal entry worksheet No Date Debit Credit 1 2022 General Journal Construction in progress Various accounts 3.192.000 3,192,000 2 2022 3.256,000 Accounts receivable Billings on construction contract 3.256.000 2022 3.200,000 Cash Accounts receivable 3,200,000 4 2022 Cost of construction Construction in progress Revenue from long-term contracts 3.192.000 1.208,000 4.400,000 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) 2021 2022 Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings $ 270,000 $ 326.000 $ $ 2,900,000 (2.140,000) 7.295836 (5.396.000) 760,000 1,899.836 Current liabilities Costs and profit in excess of bilings $ 270,000) $ 0 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.) 2021 2022 2023 Costs incurred during the year $2,204,000 $3,870,000 $3,270,000 Estimated costs to complete as of year-end 5,396,000 3,170,000 Revenue Gross profit (108) $ $ 2021 2.900.000 $ 696,000 $ 2022 4,395,836 s 1,203,836 5 2023 2.704,164 279,764 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.) 2021 2022 2023 Costs incurred during the year $2,204,000 $3,870,000 $4,110,000 Estimated costs to complete as of year-end 5,396,000 4,240,000 e 2021 2022 2023 Revenue Gross profit (loss)
