In 2013, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,00 Q completed in 2015....

In 2013, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,00 Q completed in 2015. Information related to the contract is as follows: I Westgate uses the percentage-of-completion method of accounting for long-term construction contracts. 2013 2014 G Costs incurred during the year 3,344,000 3,960,000 G Est costs to complete as of year-end 5,456,000 1,496,000 G Billings during the year 2,800,000 4,504,000 G Cash collections during the year 2,520,000 4,400,000 R-1 Calculate the amount of gross profit (loss) to be recognized in each of the three years. 2013 Total contract value 10,000,000 Yearly cost 3,344,000 Cost Remaining 5,456,000 Total est cost 8,800,000 % completed 38% Total est gross profit 1,200,000 Gross profit 456,000 2014 ### 3,960,000 1,496,000 8,800,000 45% 1,200,000 540,000 R-2 In the journalS below, complete the necessary journal entries for the year 2013 (credit various accounts for construction c Journal entries 2013 (2.1) 2014 (2.2) a Record construction costs Construction in progress 3,344,000 3,960,000 Various accounts 3,344,000 b Record progress billings Accounts receivable 2,800,000 4,504,000 Billings on construction contract 2,800,000 c Record cash collections Cash 2,520,000 4,400,000 Accounts receivable 2,520,000 d Record gross profit Construction in progress (gross profit) 456,000 540,000 Cost of Construction 3,344,000 3,960,000 Revenue from LT contracts 3,800,000 R-3 Complete the information required below to prepare a partial balance sheet for 2013 and 2014 showing any items related Balance Sheet (EOY) Current Assets: 2013 2014 Accounts receivable 280,000 Construction in Progress 3,800,000 8,300,000