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Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2024 $ 2,640,000 6,160,000 2026 2025 $ 3,840,000 4,180,000 2026 $ 4,020,000

Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2024 $ 2,640,000 6,160,000 2026 2025 $ 3,840,000 4,180,000 2026 $ 4,020,000

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.3.1MBA
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Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2024 $ 2,640,000 6,160,000 2026 2025 $ 3,840,000 4,180,000 2026 $ 4,020,000 e
Transcribed Image Text:Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2024 $ 2,640,000 6,160,000 2026 2025 $ 3,840,000 4,180,000 2026 $ 4,020,000 e
Required information. [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 $ 2,640,000 6,160,000 2,080,000 1,840,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end 2025 $ 2,300,000 2,660,000 2,860,000 2,800,000 2824 $ 2,640,000 6,160,000 2026 $ 2,926,000 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. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. 2025 $ 3,840,000 4,180,000 0 5,060,000 5,360,000 2026 $ 4,020,000 8
Transcribed Image Text:Required information. [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 $ 2,640,000 6,160,000 2,080,000 1,840,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end 2025 $ 2,300,000 2,660,000 2,860,000 2,800,000 2824 $ 2,640,000 6,160,000 2026 $ 2,926,000 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. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. 2025 $ 3,840,000 4,180,000 0 5,060,000 5,360,000 2026 $ 4,020,000 8
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