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$10,000,000. The road was completed in 2026. Information related to the contract is as follows:Cost incurred during the year202420252026Estimated costs to complete as of year-endBillings during the year$ 2,490,0005,810,0002,030,000$ 3,984,000$ 2,008,6001,826,00004,444,000Cash collections during the year1,815,0003,900,0003,526,0004,285,000Westgate 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 costsincurred and costs to complete information.Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amountsshould be indicated with a minus sign.Costs incurred during the yearEstimated costs to complete as of year-endRevenueGross profit (loss)202420252026202420252026$ 2,490,0005,810,000$ 3,815,0003,115,000$ 3,215,0000

Part 2: Explanation:Step 1: Calculate the total estimated costs of the project.Total estimated costs…

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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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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 $10,000,000. 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…
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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 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…
in 2021, the southgate construction company entered into a contract to construct a bridge for $12,000,000. the bridge was completed in 2023. information related to the contract is as follows: 2021 2022 2023 cost incurred during the year $1,840,000 $3,760,000 $4,500,000 estimated costs to complete as of year-end $6,160,000 $4,400,000 $0 billings during the year $3,000,000 $4,000,000 $5,000,000 cash collections during thee year $2,600,000 $3,900,000 $5,100,000 southgate recognizes revenue using the completed contract method. what amount will southgate show on the balance sheet at december 31, 2022? multiple choice costs in excess of billings (asset) $5,600,000 billings in excess of costs (liability) $1,400,000 billings in excess of costs (liability) $280,000 costs in excess of billings (asset) $280,000 If answered within one hour,it would be appreciable!! answer all questions.
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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) $ $ 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. 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. 2024 2,800,000 700,000 2025 2024 $ 2,100,000…
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