Problem 5-10 Percentage-of-completion method [LO5-8, 5-9] 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 2018 2017 $2,072,000 $2,738,000 $2,849,000 2,590,000 2,160,000 2,650,000 5,190,000 1,880,000 2,700,000 5,420,000 2016 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 5,328,000 0 Westgate recognizes revenue over time according to percentage of completion Required 1. Calculate the amount of revenue and gross profit to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.) 2016 2017 2018 Revenue S2,800,000 3,700,00 3,500,000 Gross profit (loss) S 728,000 S 962,000 $ 651,000 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.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 2016 Construction in progress 2,072,000 Various accounts 2,072,000 2016 Accounts receivable 2,160,000 Billings on construction contract 2,160,000 2016 Cash 1,880,000 Accounts receivable 1,880,000 4 Construction in progress 728,000 Cost of construction 2,072,000 Revenue from long-term contracts 2,800,000