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In 2021, the Westgate Construction Company entered into a contract to construct a road for...

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Accounting

In 2021, 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 2023. Information related to the contract is as follows:

2021 2022 2023
Cost incurred during the year $ 2,490,000 $ 3,984,000 $ 2,008,600
Estimated costs to complete as of year-end 5,810,000 1,826,000 0
Billings during the year 2,030,000 4,444,000 3,526,000
Cash collections during the year 1,815,000 3,900,000 4,285,000

Westgate recognizes revenue over time according to percentage of completion.

Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

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