I dont not know how to solve this problem **Westgate Construction's Contract Analysis with Santa Clara County****Financial Data:***For the Year 2021:*- Cost incurred: $2,184,000- Estimated costs to complete: $5,616,000- Billings: $1,800,000- Cash collections: $1,600,000*For the Year 2022:*- Cost incurred: $3,510,000- Estimated costs to complete: $2,106,000- Billings: $3,894,000- Cash collections: $3,400,000*For the Year 2023:*- Cost incurred: $2,316,600- Estimated costs to complete: $0- Billings: $4,306,000- Cash collections: $5,000,000**Assumptions:**Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time.**Requirements:**1. **Calculation of Revenue and Gross Profit (Loss):** Recognize the revenue and gross profit (loss) for each of the three years.2. **Journal Entries:** - 2-a. Complete journal entries for 2021 (credit "Various accounts" for construction costs incurred). - 2-b. Complete journal entries for 2022 (credit "Various accounts" for construction costs incurred). - 2-c. Complete journal entries for 2023 (credit "Various accounts" for construction costs incurred).3. **Partial Balance Sheet Preparation:** Provide necessary information for a partial balance sheet for 2021 and 2022, displaying items related to the contract.4. **Alternative Cost Scenario 1:** - 2021: Cost incurred: $2,520,000; Estimated costs: $5,720,000 - 2022: Cost incurred: $3,860,000; Estimated costs: $3,220,000 - 2023: Cost incurred: $3,220,000; Estimated costs: $05. **Alternative Cost Scenario 2:** - 2021: Cost incurred: $2,520,000; Estimated costs: $5,720,000 - 2022: Cost incurred: $3,860,000; Estimated costs: $4,220,000 - 2023: Cost **Instruction for Completing the Balance Sheet Exercise**To complete this exercise, follow the instructions below. You will be preparing a partial balance sheet for the years 2021 and 2022, focusing on items related to the contract.**Tabs Navigation:**- The interface contains tabs labeled Req 1, Req 2A, Req 2B, Req 2C, Req 3, Req 4, and Req 5. Navigate through these tabs to complete different sections of the question.**Task Description:**- Complete the information required to prepare a partial balance sheet for 2021 and 2022. Ensure that you include any items related to the contract as specified.**Partial Balance Sheet Layout:**1. **Current Assets (2021 & 2022):** - Fill in the blank spaces with appropriate current asset accounts and their respective values for each year. - Note that empty spaces are provided to input this data.2. **Current Liabilities (2021 & 2022):** - Similarly, fill in the blank spaces for current liabilities for both years. - Ensure no liabilities related to the contract are left out.3. **Numerical Fields:** - The numerical fields for 2021 and 2022 are initially set to $0 for some entries. Adjust these values according to the data you have.**Navigation Arrows:**- The blue arrows labeled "Req 2C" and "Req 4" help to navigate between different requirement sections for further inputs or adjustments.This exercise is designed to test your understanding of constructing a balance sheet and accurately reflecting contractual obligations within the financial statements.

According to contract accounting, the revenue from a contract with a customer is recognized when…

Required: 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). 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. 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. Cost incurred during the year Estimated costs to complete as of year-end 2021 $2,520,000 5,720,000 2022 $3,860,000 3,220,000 2023 $3,220,000 0