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 $2,542,000 .5.658000 2022 $3,772,000 2023 Cost incurred during the year Estimated costs to complete as of year-end $2,074,600

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 $2,542,000 .5.658000 2022 $3,772,000 2023 Cost incurred during the year Estimated costs to complete as of year-end $2,074,600

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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Rahul
On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Billings Costs incurred Est'd Costs to complete 2022 10,500,000 5,460,000 20,540,000 2023 12,500,000 9,984,000 13,156,000 2024 14,440,000 15,756,000 - The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks. What is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000
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2) 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 2022 2023 Cost incurred during the year $ 2,100,000 $ 2,450,000 $ 2,695,000 Estimated costs to complete as of year-end 4,900,000 2,450,000 0 Billings during the year 2,200,000 2,350,000 5,450,000 Cash collections during the year 1,900,000 2,300,000 5,800,000 Westgate recognizes revenue over time according to percentage of completion. Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
snju
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 $ 2,400,000 5,600,000 2,000,000 1,800,000 2026 $ 2,200,000 0 4,000,000 Billings during the year Cash collections during the year 4,600,000 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 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 2024 (credit "Cash, Materials, etc." for construction costs incurred). 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,…
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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Revenue Gross profit (loss) 2024 2024 2025 $ 2,550,000 $4,250,000 5,950,000 2,050,000 1,825,000 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. 2025 2026 1,700,000 4,750,000 4,100,000 2026 $1,870,000 8 3,200,000 4,075,000
In 2024, the Westgate construction company entered into a contract to construct a Road for Santa Clara county for $10 million. The road was completed in 2026. Information related to the contract is as follows: cost incurred during the year 2024, 2.4 million estimated cost to complete as of year end 2024 5.6 million billings during the year 2024 2 million cash collections during the year 2024 1.8 million cost incurred during the year 2025, 3.6 million estimated cost to complete as of year end 2025 2 million buildings during the year 2025, 4 million cash collections during the year 2025, 3.6 million cost incurred during the year, 2026, 2.2 million estimated cost to complete as of year end 0, fillings during the year 2026, 4 million cash collections during the year 2026, 4.6 million Westgate recognizes revenue overtime according to percentage of completion. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs…
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 $ 3,600,000 $4,050,000 $1,485,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 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 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 2024 (credit "Cash, Materials, etc." for construction costs incurred). 5,400,000 3,000,000 4,650,000 2,800,000 4,600,000 1,350,000 0 2,350,000 2,600,000 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs…
naerubhai
Diamond Construction which has a calendar year end, has entered into a non-cancellable fixed priced contract of $4,200,000 beginning May 1, 2019 to build a road for a municipality. It has been estimated that the road will be complete by April 2021. The following data pertains to the construction period: 2019 2020 2021 Costs during the year 1,850,000 1,700,000 500,000 Estimated costs to complete 2,050,000 700,000 - Total Required Assuming the company uses the percentage of completion method based on input, calculate and record the revenue and profit for each year (i.e. prepare only the annual journal entry reporting the revenue / profit for the year).
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 year 2021 $2,490,000 2022 $3,984,000 2023 $2,008,600 Estimated costs to complete as of year-end 5,810,000 1,826,000 0 Billings during the year 2,030,000 4,444,000 Cash collections during the year 3,526,000 4,285,000 1,815,000 3,900,000 Westgate recognizes revenue over time according to percentage of completion. 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. (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.) Costs incurred during the…