Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9][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 yearEstimated costs to complete as of year-endBillings during the yearCash collections during the yearProblem 6-10 (Algo) Part 5Westgate recognizes revenue over time according to percentage of completion.Costs incurred during the yearEstimated costs to complete as of year-endRevenueGross profit (loss)$$2024$ 2,610,0006,390,0002,100,0001,850,0005. 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.X Answer is complete but not entirely correct.20263,939,962(110,038)2024Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amountsshould be indicated with a minus sign.2,900,000 $290,000 $20252025$ 3,162,0002,028,0003,160,038 $(689,962) $2024$ 2,610,0006,390,0003,672,0003,000,0002026$ 2,230,8002025$ 3,850,0004,200,0004,228,0005,150,00002026$ 4,050,0000

The percentage of completion method is a useful accounting method for recognizing the ongoing…

. 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. lote: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts hould be indicated with a minus sign.

. 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. lote: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts hould be indicated with a minus sign.

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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