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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