Need part 1, 2a, 2b, 2c please 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred). **Westgate Construction Company Contract Overview**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:**Contract Financial Details:**- **2021:** - Cost incurred during the year: $2,184,000 - Estimated costs to complete as of year-end: $5,616,000 - Billings during the year: $1,800,000 - Cash collections during the year: $1,680,000- **2022:** - Cost incurred during the year: $3,510,000 - Estimated costs to complete as of year-end: $2,106,000 - Billings during the year: $3,600,000 - Cash collections during the year: $3,960,000- **2023:** - Cost incurred during the year: $2,316,000 - Estimated costs to complete as of year-end: $0 - Billings during the year: $4,386,000 - Cash collections during the year: $5,000,000Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time.**Required Tasks:**1. **Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.**2. **Journal Entries:** - Complete the necessary journal entries for the year 2021. - Complete the necessary journal entries for the year 2022. - Complete the necessary journal entries for the year 2023.3. **Prepare a Partial Balance Sheet:** - Complete the required information for the years 2021 and 2022 showing any items related to the contract.4. **Revenue and Gross Profit Calculation:** - Calculate the revenue and gross profit (loss) to be recognized in each of the three years based on incurred costs and costs to complete information. **Costs Details for Calculation:** - **2021:** - Cost incurred during the year: $2,520,000 - Estimated costs to complete as of year-end: $5,720,000 - **2022:** - Cost incurred during the

Revenue(each year)=Cost incurred/(total expected cost)*Total expected revenue-Revenue earlier…

n 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The pad was completed in 2023. Information related to the contract is as follows: 2021 $ 2,184,000 5,616,000 1,800,000 1,600,000 2022 2023 $2,316,600 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $ 3,510,000 2,106,000 3,894,000 3,400,000 4,306,000 5,000, 000 ssume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. equired: .Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. -a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs ncurred). -b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs ncurred). -c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs ncurred). . Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the ontract. . Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs ncurred and costs to complete information.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q