The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completionmethod a usedGiven the followingDecember 312021$4.2006,3005,1006,00020202022$11,650$2,500Costs incumed to duteEsbinated costs to compieteBitingu to dateCollections to date7,6004.0003,80012,00011,900The 12/31/21 belance of Construction in Progress isSelect oneO. $4300Ob S5040O $5.000Od $4200O $4800

Construction in progress is equal to the contract value multiplied by the percentage of completion.…

The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion method is used Given the following December 31 2021 $4.200 6,300 6,100 6,000 2022 $11,600 Costs incured to de Estinated costs to complete ing to date Collections to date $2,500 7,600 4,000 3,800 12,000 11,900 The 12/31/21 balance of Construction in Progress is

The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion method is used Given the following December 31 2021 $4.200 6,300 6,100 6,000 2022 $11,600 Costs incured to de Estinated costs to complete ing to date Collections to date $2,500 7,600 4,000 3,800 12,000 11,900 The 12/31/21 balance of Construction in Progress is

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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6) 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. 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. (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.) 2021 2022 2023 Costs incurred…
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5
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