In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows:2024$ 2,400,0005,600,0002,000,0001,800,0002026$ 2,200,00004,000,000Billings during the yearCash collections during the year4,600,000Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred).2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred).2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred).3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract.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.Cost incurred during the yearEstimated costs to complete as of year-endCost incurred during the yearEstimated costs to complete as of year-endReq 1Cost incurred during the yearEstimated costs to complete as of year-end5. 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.Complete this question by entering your answers in the tabs below.Req 2ARevenueGross profit (loss)Req 2B2024$ 2,400,0005,600,000Req 2C2024$ 2,400,0005,600,00020262025$ 3,600,0002,000,0004,000,0003,600,000Req 32025$3,800,0003,100,0002025$ 3,800,0004,100,000Req 42026$ 3,200,000Req 50Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the aboveinformation.Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.202420252026$ 3,900,0000

In the 'completed contract method' of revenue recognition, all the revenue and profit of contract…

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. 2026 2025 $ 3,800,000 4,100,000 $ 3,900,000 0 Cost incurred during the year Estimated costs to complete as of year-end 2024 $2,400,000 5,600,000 Complete this question by entering your answers in the tabs below.

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. 2026 2025 $ 3,800,000 4,100,000 $ 3,900,000 0 Cost incurred during the year Estimated costs to complete as of year-end 2024 $2,400,000 5,600,000 Complete this question by entering your answers in the tabs below.

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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Construction costs: 2020: $100,000 2021: $186,000 2022: $464,000 Estimated Costs to Complete: 2020: $400,000 2021: $464,000 2022: $0 Total Contract Price: $700,00O Assuming this company uses the percentage of completion method, how much Gross Profit/Loss will the company recognize in 2021? O $464,000 O $(90,000) O $(22,000) O $50,000
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Required information Skip to question [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: 2024 2025 2026 Cost incurred during the year $ 2,059, 000 $ 2,627,000 $ 2,655,400 Estimated costs to complete as of year - end 5, 041, 000 2,414, 000 0 Billings during the year 2, 190, 000 2, 496,000 5, 314,000 Cash collections during the year 1,895,000 2,400,000 5, 705, 000 Westgate recognizes revenue over time according to percentage of completion. 2 - a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2- b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2- c. In the journal…
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Required information Skip to question [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: 2024 2025 2026 Cost incurred during the year $ 2,016,000 $2,808,000 $2,613,600 Estimated costs to complete as of year-end 5, 184,000 2,376, 000 0 Billings during the year 2, 180,000 2,644,000 5, 176,000 Cash collections during the year 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the…