In 2013, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,00 Q completed in 2015

Complete the information required below to prepare a partial balance sheet for 2013 and 2014 showing any items related to the contract.
Balance Sheet (EOY)
Current Assets:	2013	2014
Accounts receivable		280,000		384,000
Construction in Progress	3,800,000		8,300,000
Less: Billings	(2,800,000)		(7,304,000)
Cost in excess of billings

Calculate the amount of gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information.
	2013	2014	2015
Costs incurred during the year	2,480,000	3,840,000	3,280,000
Est costs to complete as of year-end	5,680,000	3,180,000	–
	2013	2014	2015
Total contract value	10,000,000	10,000,000	10,000,000
Yearly cost	2,480,000	3,840,000	3,280,000
Cost Remaining	5,680,000	3,180,000	–
Total est cost	8,160,000	9,500,000	9,600,000
% completed	30%	40%	34%
Total est gross profit	1,840,000	500,000	400,000
Gross profit	559,216	202,105	(361,321)

Calculate the amount of gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information.
	2013	2014	2015
Costs incurred during the year	2,480,000	3,840,000	4,020,000
Est costs to complete as of year-end	5,680,000	4,180,000	–
	2013	2014	2015
Total contract value	10,000,000	10,000,000	10,000,000
Yearly cost	2,480,000	3,840,000	4,020,000
Cost Remaining	5,680,000	4,180,000	–
Total est cost	8,160,000	10,500,000	10,340,000
% completed	30%	37%	39%
Total est gross profit	1,840,000	(500,000)	(340,000)
Gross profit	559,216	(182,857)	(716,359)