In 2011, 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 2013. Information related to the contract is as follows:

Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.

Required:
1. Calculate the amount of gross profit to be recognized in each of the three years.
2. Prepare all necessary journal entries for each of the years (credit various accounts for construction costs incurred).
3. Prepare a partial balance sheet for 2011 and 2012 showing any items related to the contract.
4. Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information:

5. Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs incurred and costs to completeinformation:

2011 2012 2013 2400000 36000005 2200000 Cost incurred during the year Estimated costs to complete as of year-end 56,00,000 20,00,000 Billings during the year Cash collections during the year 20,00,00040,00,00040,00,000 18,00,000 36,00,00046,00,000 2011 2012 2013 2400000S 3800000 3200000 Costs incurred during the year Estimated costs to complete as of year-end 56,00,000 31,00,000