In 2018, 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 2020. Information related to the contract is as follows: 2018 2019 2020 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. rev: 09_15_2017_QC_CS-99734 3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)
| Computation of % Completion & Gross Profit & Revenue | ||||
| 2018 | 2019 | 2020 | ||
| Contract price | $10,000,000 | $10,000,000 | $10,000,000 | |
| Estimated cost: | ||||
| Cost To date | $2,490,000 | $6,305,000 | $9,520,000 | |
| Estimated costs To Complete | $5,810,000 | $3,115,000 | ||
| Estimated Total costs | $8,300,000 | $9,420,000 | $9,520,000 | |
| % Completed | 30% | 67% | 100% | |
| Estimated Total gross profit | $1,700,000 | $580,000 | $480,000 | |
| Total Gross profit To be Recognized | $510,000 | $388,206 | $480,000 | |
| Gross profit Recognized in Previous years | $0 | $510,000 | $388,206 | |
| Gross profit Recognized during the current year | $510,000 | -$121,794 | $91,794 | |
| Revenue to be recognized | $2,030,000 | $4,444,000 | $3,526,000 | |
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