I am having problems with this and need to understand where I am messing up. Please help. Thank you.

In 2016, 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 2018. Information related to the contract is as follows:

2016 2017 2018 Cost incurred during the year $ 2,400,000 $ 3,600,000 $ 2,200,000 Estimated costs to complete as of year-end 5,600,000 2,000,000 0 Billings during the year 2,000,000 4,000,000 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000

Westgate Construction uses the completed contract method of accounting for long-term construction contracts.

Required:

1.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Loss amounts should be indicated with a minus sign.)

	2016	2017	2018
Revenue	$1800000	3600000	4600000
Gross profit (loss)	$0	0	2400000

2-a.

In the journal below, complete the necessary journal entries for the year 2016 (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.)

	Date	General Journal	Debit	Credit
1	2016	Construction in progress	2,400,000
2		Various accounts		2,400,000
3
4	2016	Accounts receivable	2,000,000
5		Billings on construction contract		2,000,000
6
7	2016	Cash	1,800,000
8		Accounts receivable		1,800,000
9
10	2016	Construction in progress	500,000
11		Cost of construction	2,400,000
12		Revenue from long-term contracts		2,900,000

2-b.

In the journal below, complete the necessary journal entries for the year 2017 (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.)

	Date	General Journal	Debit	Credit
1	2017	Construction in progress	3,600,000
2		Various accounts		3,600,000
3
4	2017	Accounts receivable	4,000,000
5		Billings on construction contract		4,000,000
6
7	2017	Cash	3,600,000
8		Accounts receivable		3,600,000
9
10	2017	Construction in progress	800,000
11		Cost of construction	3,600,000
12		Revenue from long-term contracts		4,400,000

2-c.

In the journal below, complete the necessary journal entries for the year 2018 (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.)

	Date	General Journal	Debit	Credit
1	2018	Construction in progress	2,200,000
2		Various accounts		2,200,000
3
4	2018	Accounts receivable	4,000,000
5		Billings on construction contract		4,000,000
6
7	2018	Cash	4,600,000
8		Accounts receivable		4,600,000
9
10	2018	Construction in progress	500,000
11		Cost of construction	2,200,000
12		Revenue from long-term contracts		2,700,000

3.

Complete the information required below to prepare a partial balance sheet for 2016 and 2017 showing any items related to the contract.

Balance Sheet (Partial)	2016			2017		2014
Current assets:
		$0		$0
Current liabilities:

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. (Loss amounts should be indicated with a minus sign.)

2016 2017 2018 Cost incurred during the year $ 2,400,000 $ 3,800,000 $ 3,200,000 Estimated costs to complete as of year-end 5,600,000 3,100,000 0

	2016	2017	2018
Revenue	$2,400,000	$3,800,000	$3,200,000
Gross profit (loss)	$(3,200,000)	$5,700,000	$0

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. (Loss amounts should be indicated with a minus sign.)

2016 2017 2018 Cost incurred during the year $ 2,400,000 $ 3,800,000 $ 3,900,000 Estimated costs to complete as of year-end 5,600,000 4,100,000 0

	2016	2017	2018
Revenue	$5,600,000	$4,100,000
Gross profit (loss)