Need Part 55. 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 2023Cost 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:**- Cost incurred during the year: $2,184,000- Estimated costs to complete as of year-end: $5,616,000- Billings during the year: $1,800,000- Cash collections during the year: $1,500,000**2022:**- Cost incurred during the year: $3,510,000- Estimated costs to complete as of year-end: $3,240,000- Billings during the year: $3,600,000- Cash collections during the year: $3,840,000**2023:**- Cost incurred during the year: $2,316,000- Estimated costs to complete as of year-end: $0- Billings during the year: $4,368,000- Cash collections during the year: $5,000,000Assume 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 2021 (credit "Various accounts" for construction costs incurred). **b.** In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). **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. - **2021:** - Cost incurred during the year: $2,520,000 - Estimated costs to complete as of year-end: $5,720,000 - **2022:** - Cost incurred during the year: $3

Solution 5: Year Actual cost incurred (A) Total cost incurred till date (B) Total estimated Cost…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

I need help with question is problem
Question 36 7 pts Cinderella Company began 2023 with its accounts receivable, inventory, and prepaid expenses of $310,000 and its total current liabilities totaling $90,000. At the end of the year, these same current assets totaled $260,000, while its total current liabilities totaled $190,000. Net income for the year was $100,000. Included in net income were a gain of $6,000 on the sale of equipment and Depreciation Expense of $44,000 for the year ending December 31, 2023. REQUIRED: Using the indirect method, prepare the operating activities section of the statement of cash flows for the year ending December 31, 2023. HINT: Use the following rules for adjusting amounts for current assets other than cash and current liabilities: Begin this section of the statement of cash flows from operating expenses with net income. For an increase in a noncash current asset (from the beginning of the period to the end per the comparative balance sheets) decrease cash (subtraction from net income)…
CALCULATOR PRINTER VERSION 1 BACK NEX Brlef Exercise 22-02 At the beginning of 2020, Riverbed Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2020, pretax income under the two methods was as follows: percentage-of-completion $117,300, and completed-contract $77,700. The tax rate is 35%. Riverbed has a profit-sharing plan, which pays all employees a bonus at year-end based on 1% of pretax income. Compute the indirect effect of Riverbed's change in accounting principle that will be reported in the 2020 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers. Indirect effect
jagdish
Candlemania, Inc. is a maker of scented candles in decorative containers. During 2020, the company sold 30,000 candles at a sales price of $120 each. Following are the 2022 financial results: Candlemania, Inc. Contribution Format Income Statement For the Year 2022 $ 3,600,000 Sales Less variable costs: Direct mate 540,000 Direct laboi 600,000 Variable ov 660,000 Total variable costs Contribution Margin Less fixed costs: 1,800,000 $ 1,800,000 500,000 $ 1,300,000 Income before taxes You are the top managerial accountant at Candlemania, and are scheduled to meet with the company's CEO next week to discuss the financial outlook for 2023. In particular, the CEO will want to know what steps the company might take to improve its 2022 income performance. You expect to be asked questions about the impact that various changes in sales price, sales volume, and costs would have on the company's contribution margin, breakeven point, margin of safety, and income. In addition, the CEO is likely to…