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.) ### Required Information**[The following information applies to the questions displayed below.]**In 2021, 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 the percentage of completion.---### Task4. 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 during the year | $2,100,000 | $3,900,000 | $3,300,000 || Estimated costs to complete as of year-end | $4,900,000 | $3,200,000 | $0 |### Revenue and Gross Profit (Loss) Table| | 2021 | 2022 | 2023 ||----------|------------|------------|------------|| **Revenue** | | | || **Gross profit (loss)** | | | |

Solution: Year Actual cost incurred (A) Total cost incurred till date (B) Total estimated Cost (…

. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs curred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest hole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 Costs incurred during the year Estimated costs to complete as of year-end $2,100,000 $3,900,000 $3,300,000 4,900,000 3,200,000

. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs curred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest hole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 Costs incurred during the year Estimated costs to complete as of year-end $2,100,000 $3,900,000 $3,300,000 4,900,000 3,200,000

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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