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 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) 2021 2022 2023 $2,640,000 $2,300,000 $2,926,000 6,160,000 2,660,000 2,080,000 2,860,000 1,840,000 2,800,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermed calculations. Loss amounts should be indicated with a minus sign.) 2021 2022 5,060,000 5,360,000 2023
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 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) 2021 2022 2023 $2,640,000 $2,300,000 $2,926,000 6,160,000 2,660,000 2,080,000 2,860,000 1,840,000 2,800,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermed calculations. Loss amounts should be indicated with a minus sign.) 2021 2022 5,060,000 5,360,000 2023
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:
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)
2021
$2,640,000
6,160,000
2,080,000
1,840,000
2021
2022
2022
2023
$2,300,000 $2,926,000
2,660,000
2,860,000
2,800,000
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.)
2023
0
5,060,000
5,360,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F6a17a5cf-8e4c-4ce6-9ecb-4d8deda2e06a%2F9nmmo8zj_processed.png&w=3840&q=75)
Transcribed Image Text:!
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
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)
2021
$2,640,000
6,160,000
2,080,000
1,840,000
2021
2022
2022
2023
$2,300,000 $2,926,000
2,660,000
2,860,000
2,800,000
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.)
2023
0
5,060,000
5,360,000
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