Problem 5-11 Long-term contract revenue recognition upon completion [LO5-9] 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 Cost incurred during the year Estimated costa to complete as of year- 5,544,000 1,764,000 end aillings during the year Cash collectiona during the year $2,856,000 $3,780,000 $1,940,400 2,400,000 4,236,000 3,364,000 2,200,000 4,000,000 3,800,000 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 ofthe three years 2-a. In the journal below, complete the necessary journal entries for the year 2018 (credt Various accounts" for construction costs Incurred. 2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts for construction costs Incurred. 2-C. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts for construction costs Incurred. 3. Complete the Information required below to prepare a patial balance sheet for 2018 and 2019 showing any items re ated to the contract 4. Calculate the amount of revenue and gross profit (oss) to be recognized In each of the three years assuming the following costs incurred and costs to complete information. 2018 Cost incurred during the year $2,440,000 $3,820,000 $3,240,000 Estimated costa to complete as of year- 5,640,000 3,140,000 end 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. 2018 2019 2020 Cost incurred during the year $2,440,000 $3,820,000 3,960,000 Estimated costs to complete as of year- 5,640,000 end 4,140,000