FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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[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
$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
2024
$ 2,184,000
5,616,000
2,120,000
1,860,000
2024
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the fo
incurred and costs to complete information.
2025
2025
$ 3,510,000
2,106,000
3,574,000
3,400,000
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Le
should be indicated with a minus sign.
2026
2024
$ 2,184,000
5,616,000
2026
$ 2,316,600
2025
$ 3,860,000
3,160,000
0
4,306,000
4,740,000
2026
$ 3,260,000
0
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Transcribed Image Text:[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 $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 2024 $ 2,184,000 5,616,000 2,120,000 1,860,000 2024 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the fo incurred and costs to complete information. 2025 2025 $ 3,510,000 2,106,000 3,574,000 3,400,000 Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Le should be indicated with a minus sign. 2026 2024 $ 2,184,000 5,616,000 2026 $ 2,316,600 2025 $ 3,860,000 3,160,000 0 4,306,000 4,740,000 2026 $ 3,260,000 0
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