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:Cost incurred during the yearEstimated costs to complete as of year-endBillings during the yearCash collections during the yearWestgate recognizes revenue over time according to percentage of completion.Balance Sheet (Partial)Current assets:Accounts receivableConstruction in progress3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to thecontract. (Do not round intermediate calculations.)Less: BillingsCosts and profit in excess of billingsCurrent liabilities:Answer is complete but not entirely correct.✓✓20212021$2,184,0002022$3,510,0005,616,000 2,106,0002,120,000 3,574,000 4,306,0003,400,000 4,740,0001,860,000$ 2,800,000✔2,120,000$ 260,000$680,000< Prev0✓S2022990,000 X990,000 XS18 19202023$2,316,600$ 434,000$of 21000▬Next >

Some characteristics of construction contract are as follows: 1. A construction contract is a…

Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 2022 $2,184,000 $3,510,000 5,616,000 2,106,000 2,120,000 3,574,000 4,306,000 1,860,000 3,400,000 4,740,000 2023 $2,316,600 0

Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 2022 $2,184,000 $3,510,000 5,616,000 2,106,000 2,120,000 3,574,000 4,306,000 1,860,000 3,400,000 4,740,000 2023 $2,316,600 0

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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Question 97 Using Financial Statements for 2020, times interest earned for the year 2020 is 15.37. TRUE OR FALSE?
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