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. 2021 2022 2023 Cost incurred during the year $ 2,520,000 $ 3,860,000 $ 4,080,000 Estimated costs to complete as of year-end 5,720,000 4,220,000 0
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. 2021 2022 2023 Cost incurred during the year $ 2,520,000 $ 3,860,000 $ 4,080,000 Estimated costs to complete as of year-end 5,720,000 4,220,000 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need Part 5
5. Calculate the amount of revenue and gross
2021 | 2022 | 2023 | |||||||||
Cost incurred during the year | $ | 2,520,000 | $ | 3,860,000 | $ | 4,080,000 | |||||
Estimated costs to complete as of year-end | 5,720,000 | 4,220,000 | 0 | ||||||||
![In 2021, 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 2023. Information related to the contract is as follows:
2021
$2,184,000
5,616,000
1,800,000
1,600,000
2023
$2,316, 600
2022
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
$ 3,510,000
2,106,000
3,894,000
3,400,000
4,306,000
5,000,000
Assume 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 2021 (credit "Various accounts" for construction costs
incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs
incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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.
2022
$3,860,000
3,220,000
2021
2023
Cost incurred during the year
Estimated costs to complete as of year-end
$2,520,000
5,720,000
$3,220,000
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.
2021
2022
2023
Cost incurred during the year
Estimated costs to complete as of year-end
$2,520,000
5,720,000
$3,860,000
4,220,000
$4,080,000
Complete this question by entering your answers in the tabs below.
Req 1
Reg 2A
Reg 2B
Reg 20
Req 3
Reg 4
Reg 5
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - be
certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)
2021
2022
2023
Revenue
Gross profit (loss)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a92e595-69a8-4ba3-9e62-d1ba59e7a231%2F1d4f1fdf-816a-4899-9a71-99ab34d4721c%2Fedeac2_processed.png&w=3840&q=75)
Transcribed Image Text:In 2021, 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 2023. Information related to the contract is as follows:
2021
$2,184,000
5,616,000
1,800,000
1,600,000
2023
$2,316, 600
2022
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
$ 3,510,000
2,106,000
3,894,000
3,400,000
4,306,000
5,000,000
Assume 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 2021 (credit "Various accounts" for construction costs
incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs
incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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.
2022
$3,860,000
3,220,000
2021
2023
Cost incurred during the year
Estimated costs to complete as of year-end
$2,520,000
5,720,000
$3,220,000
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.
2021
2022
2023
Cost incurred during the year
Estimated costs to complete as of year-end
$2,520,000
5,720,000
$3,860,000
4,220,000
$4,080,000
Complete this question by entering your answers in the tabs below.
Req 1
Reg 2A
Reg 2B
Reg 20
Req 3
Reg 4
Reg 5
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - be
certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)
2021
2022
2023
Revenue
Gross profit (loss)
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