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Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$ Problem $6-10($Algo$)$ Part $1,$ Problem $6-10($Algo$)$ Part $2$

$2-$a$.$ In the journal below, complete the necessary journal entries for the year $2024($credit $$Cash$,$ Materials, etc.$$ for construction costs incurred$).$

$2-$b$.$ In the journal below, complete the necessary journal entries for the year $2025($credit $$Cash$,$ Materials, etc.$$ for construction costs incurred$).$

$2-$c$.$ In the journal below, complete the necessary journal entries for the year $2026($credit $$Cash$,$ Materials, etc.$$ for construction costs incurred$).$

Required:

$1.$ Calculate the amount of revenue and gross profit $($loss$)$ to be recognized in each of the three years.

Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.

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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:

$202420252026$

Cost incurred during the year $ $2,580,000$ $ $4,042,000$ $ $2,175,800$

Estimated costs to complete as of year$-$end $6,020,0001,978,0000$

Billings during the year $2,060,0004,562,0003,378,000$

Cash collections during the year $1,830,0004,200,0003,970,000$

Westgate recognizes revenue over time according to percentage of completion. ; Problem $6-10($Algo$)$ Part $3$

$3.$ Complete the information required below to prepare a partial balance sheet for $2024$ and $2025$ showing any items related to the contract.

Note: Do not round intermediate calculations. ; Problem $6-10($Algo$)$ Part $4$

$4.$ 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.

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.

$202420252026$

Costs incurred during the year $ $2,580,000$ $ $3,830,000$ $ $3,230,000$

Estimated costs to complete as of year$-$end $6,020,0003,130,0000,$ Problem $6-10($Algo$)$ Part $5$

$5.$ 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.

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.

$202420252026$

Costs incurred during the year $ $2,580,000$ $ $3,830,000$ $ $3,990,000$

Estimated costs to complete as of year$-$end $6,020,0004,160,0000$