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.) 2021 2022 2023 Costs incurred during the year Estimated costs to complete as of year-end $2,291,000 $3,855,000 $3,255,000 5,609,000 3,155,000 0 2021 2022 2023 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. (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 Estimated costs to complete as of year-end $2,291,000 $3,855,000 $3,255,000 5,609,000 3,155,000 0 2021 2022 2023 Revenue Gross profit (loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help me to solve this problem
![[The following information applies to the questions displayed below.]
In 2021, the Weslgate 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:
2022
Cost incurred during the year
2021
$2,291,000
2023
$2,259,400
$3,555,000
Estimated costs to complete as of year-end
Billings during the year
5,609,000
2,054,000
0
2,110,000 3,736,000
Cash collections during the year
4,154,000
4,645,000
1,855,000
3,500,000
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.)
2021
2022
2023
Costs incurred during the year
Estimated costs to complete as of year-end
$2,291,000 $3,855,000 $3,255,000
5,609,000 3,155,000
2021
2022
2023
Revenue
Gross profit (loss)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5842010-91f9-42a8-8f09-43c1980060f2%2F0c0d820b-5011-4bad-8c04-6c09ee6ec907%2Fwdomkkl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
In 2021, the Weslgate 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:
2022
Cost incurred during the year
2021
$2,291,000
2023
$2,259,400
$3,555,000
Estimated costs to complete as of year-end
Billings during the year
5,609,000
2,054,000
0
2,110,000 3,736,000
Cash collections during the year
4,154,000
4,645,000
1,855,000
3,500,000
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.)
2021
2022
2023
Costs incurred during the year
Estimated costs to complete as of year-end
$2,291,000 $3,855,000 $3,255,000
5,609,000 3,155,000
2021
2022
2023
Revenue
Gross profit (loss)
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