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In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000

Accounting

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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	$2,523,000	$3,177,000	$1,980,000
Estimated costs to complete as of year-end	6,177,000	1,800,000	0
Billings during the year	2,070,000	3,630,000	4,300,000
Cash collections during the year	1,835,000	3,400, 000	4,765,000

 

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.)

	2021	2022	2023
Revenue	$2,523,000
Gross profit (loss)	$6,177,000