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 2022 2023 Cost incurred during the year $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to percentage of completion. 2.b In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). Record progress billings. Date General Journal Debit Credit 2021 _________________________ ___________ __________ _________________________ ___________ __________ _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ____________ ___________ _________________________ ____________ ___________
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 2022 2023
Cost incurred during the year $2,581,000 $2,347,000 $3,049,200
Estimated costs to complete as of year-end 6,319,000 2,772,000 0
Billings during the year 2,090,000 2,838,000 5,072,000
Cash collections during the year 1,845,000 2,900,000 5,255,000
Westgate recognizes revenue over time according to percentage of completion.
2.b In the journal below, complete the necessary
Record progress billings.
Date General Journal Debit Credit
2021 _________________________ ___________ __________
_________________________ ___________ __________
_________________________ ___________ ___________
_________________________ ___________ ___________
_________________________ ____________ ___________
_________________________ ____________ ___________
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