,620,000 Complete this question by entering your answers in the tabs below. 120,000 Req 1 Req 2A Req 28 Req 2C Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus si 2024 2025 2026 Revenue $ 0 $ 0 $ 10,000,000 Gross profit (loss) $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question
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:
2026
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
2024
$ 2,624,000
5,576,000
2,200,000
2025
$ 3,690,000
1,886,000
4,114,000
$ 2,074,600
3,686,000
2,000,000
3,800,000
4,200,000
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition
over time.
Cost incurred during the year
Estimated costs to complete as of year-end
2024
$ 2,420,000
5,620,000
2025
2026
$ 3,810,000
3,120,000
$ 3,220,000
в
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.
2024
2025
2026
Cost incurred during the year
Estimated costs to complete as of year-end
$ 2,420,000
5,620,000
$ 3,810,000
4,120,000
$ 3,930,000
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 28
Req 2C
Req 3
Req 4
Req 5
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above
information.
Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus si
2024
2025
2026
Revenue
$
0 $
0 $
10,000,000
Gross profit (loss)
$
0
Transcribed Image Text: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: 2026 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2024 $ 2,624,000 5,576,000 2,200,000 2025 $ 3,690,000 1,886,000 4,114,000 $ 2,074,600 3,686,000 2,000,000 3,800,000 4,200,000 Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Cost incurred during the year Estimated costs to complete as of year-end 2024 $ 2,420,000 5,620,000 2025 2026 $ 3,810,000 3,120,000 $ 3,220,000 в 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. 2024 2025 2026 Cost incurred during the year Estimated costs to complete as of year-end $ 2,420,000 5,620,000 $ 3,810,000 4,120,000 $ 3,930,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus si 2024 2025 2026 Revenue $ 0 $ 0 $ 10,000,000 Gross profit (loss) $ 0
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