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 $ 3,510,000 2,106,000 3,894,000 3,400,000 2023 $2,316,600 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,184,000 5,616,000 1,800,000 1,600,000 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. Cost incurred during the year Estimated costs to complete as of year-end 2021 $2,520,000 5,720,000 2022 $3,860,000 3,220,000 2023 $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. Cost incurred during the year Estimated costs to complete as of year-end 2021 $2,520,000 5,720,000 2022 $3,860,000 4,220,000 2023 $4,080,000 Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Req 20 Reg 3 Req 4 Reg 5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Need part 2-c, 3, & 4 

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.

2021 2022 2023
Cost incurred during the year $ 2,520,000 $ 3,860,000 $ 3,220,000
Estimated costs to complete as of year-end 5,720,000 3,220,000 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)
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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