Required information [The following information applies to the questions displayed below.] In 2024, 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 2026. Information related to the contract is as follows: 2024 $ 2,550,000 5,950,000 2,050,000 1,825,000 2025 $4,250,000 1,700,000 4,750,000 4,100,000 Cost incurred during the year Estimated costs to complete as of year-end I Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 2026 $1,870,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. 0 3,200,000 4,075,000
Required information [The following information applies to the questions displayed below.] In 2024, 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 2026. Information related to the contract is as follows: 2024 $ 2,550,000 5,950,000 2,050,000 1,825,000 2025 $4,250,000 1,700,000 4,750,000 4,100,000 Cost incurred during the year Estimated costs to complete as of year-end I Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 2026 $1,870,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. 0 3,200,000 4,075,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 10C
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