Taking this into consideration:

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.

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.)

View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Cash 105,600 Accounts receivable 26,400 105,600 26,400 Sales revenue Deferred revenue - loyalty points Cash Accounts receivable Deferred revenue - loyalty points 79,200 26,400 21,120 Sales revenue 126,720