Question $4$

In $2024,$ 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 $2026.$ Information related to

the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Required:

Calculate the amount of revenue and gross profit to be recognized in each of the three

years.

Prepare all necessary journal entries for each of the years $($credit "Cash, Materials,

etc." for construction costs incurred$).$

Prepare a partial balance sheet for $2024$ and $2025$ showing any items related to the

contract. Indicate whether any of the amounts shown are contract assets or contract

liabilities.

Calculate the amount of revenue and gross profit to be tecognized in each of the three

years, assuming the following costs incurred and costs to complete information:

Calculate the amount of revenue and gross profit to be recognized in each of the three

years, assuming the following costs incurred and costs to complete information:

Costs incurred during the year