Need Part 55. 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. 2021 2022 2023Cost incurred during the year$2,520,000 $3,860,000 $4,080,000 Estimated costs to complete as of year-end 5,720,000 4,220,000 0 In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. Theroad was completed in 2023. Information related to the contract is as follows:2021$2,184,0005,616,0001,800,0001,600,0002023$2,316, 6002022Cost incurred during the yearEstimated costs to complete as of year-endBillings during the yearCash collections during the year$ 3,510,0002,106,0003,894,0003,400,0004,306,0005,000,000Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.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 costsincurred).2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costsincurred).2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costsincurred).3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to thecontract.4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costsincurred and costs to complete information.2022$3,860,0003,220,00020212023Cost incurred during the yearEstimated costs to complete as of year-end$2,520,0005,720,000$3,220,0005. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costsincurred and costs to complete information.202120222023Cost incurred during the yearEstimated costs to complete as of year-end$2,520,0005,720,000$3,860,0004,220,000$4,080,000Complete this question by entering your answers in the tabs below.Req 1Reg 2AReg 2BReg 20Req 3Reg 4Reg 5Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - becertain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)202120222023RevenueGross profit (loss)

Solution 5: Year Actual cost incurred (A) Total cost incurred till date (B) Total estimated Cost…

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. 2021 2022 2023 Cost incurred during the year $ 2,520,000 $ 3,860,000 $ 4,080,000 Estimated costs to complete as of year-end 5,720,000 4,220,000 0

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. 2021 2022 2023 Cost incurred during the year $ 2,520,000 $ 3,860,000 $ 4,080,000 Estimated costs to complete as of year-end 5,720,000 4,220,000 0

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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