contract
Can you help with question 1-5 in attached, thanks so much.
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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 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 3,471,000 | $ 4,005,000 | $ 1,566,400 |
| Estimated costs to complete as of year-end | 5,429,000 | 1,424,000 | 0 |
| Billings during the year | 2,900,000 | 4,576,000 | 2,524,000 |
| Cash collections during the year | 2,700,000 | 4,500,000 | 2,800,000 |
Assume 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
2-a. In the journal below, complete the necessary
2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit “Cash, Materials, etc.” for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit “Cash, Materials, etc.” for construction costs incurred).
3. Complete the information required below to prepare a partial
4. 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.
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,490,000 | $ 3,845,000 | $ 3,290,000 |
| Estimated costs to complete as of year-end | 5,690,000 | 3,190,000 | 0 |
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.
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,490,000 | $ 3,845,000 | $ 4,035,000 |
| Estimated costs to complete as of year-end | 5,690,000 | 4,190,000 | 0 |
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