Required information[The following information applies to the questions displayed below.]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:Cost incurred during the yearEstimated costs to complete as of year-endBillings during the yearCash collections during the year2021$2,100,0002023$2,695,0002022$2,450,0004,900,000 2,450,0002,200,000 2,350,000 5,450,0001,900,0002,300,0005,800,000Westgate recognizes revenue over time according to percentage of completion.Ø2-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).

It has been given that a percentage of completion method is used and based on that the journal…

2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] 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 $2,490,000 5,810,000 Cost incurred during the year 2022 $3,984,000 1,826,000 2023 $2,008,600 Estimated costs to complete as of year-end 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. 5. 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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 $2,490,000…
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