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: 2025 2024 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,523,000 6,177,000 2,070,000 $ 3,177,000 2026 $ 1,980,000 1,800,000 0 3,630,000 Cash collections during the year 1,835,000 3,400,000 4,300,000 4,765,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 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. Note: 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 year Estimated costs to complete as of year-end 2024 2025 2026 $ 2,523,000 6,177,000 $ 3,835,000 4,170,000 $ 4,005,000 0 Answer is complete but not entirely correct. 2024 2025 2026 Revenue $ 2,900,000 $ Gross profit (loss) $ 377,000 $ 3,139,000 $ (696,000) $ 3,961,000 (44,000)
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: 2025 2024 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,523,000 6,177,000 2,070,000 $ 3,177,000 2026 $ 1,980,000 1,800,000 0 3,630,000 Cash collections during the year 1,835,000 3,400,000 4,300,000 4,765,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 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. Note: 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 year Estimated costs to complete as of year-end 2024 2025 2026 $ 2,523,000 6,177,000 $ 3,835,000 4,170,000 $ 4,005,000 0 Answer is complete but not entirely correct. 2024 2025 2026 Revenue $ 2,900,000 $ Gross profit (loss) $ 377,000 $ 3,139,000 $ (696,000) $ 3,961,000 (44,000)
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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Transcribed Image Text: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:
2025
2024
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
$ 2,523,000
6,177,000
2,070,000
$ 3,177,000
2026
$ 1,980,000
1,800,000
0
3,630,000
Cash collections during the year
1,835,000
3,400,000
4,300,000
4,765,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 5
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.
Note: 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 year
Estimated costs to complete as of year-end
2024
2025
2026
$ 2,523,000
6,177,000
$ 3,835,000
4,170,000
$ 4,005,000
0
Answer is complete but not entirely correct.
2024
2025
2026
Revenue
$
2,900,000
$
Gross profit (loss)
$
377,000 $
3,139,000 $
(696,000) $
3,961,000
(44,000)
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