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 $ 2,100,000   $ 2,450,000   $ 2,695,000   Estimated costs to complete as of year-end   4,900,000     2,450,000     0   Billings during the year   2,200,000     2,350,000     5,450,000   Cash collections during the year   1,900,000     2,300,000     5,800,000       Westgate recognizes revenue over time according to percentage of completion.     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. (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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $ 2,100,000   $ 2,450,000   $ 2,695,000  
Estimated costs to complete as of year-end   4,900,000     2,450,000     0  
Billings during the year   2,200,000     2,350,000     5,450,000  
Cash collections during the year   1,900,000     2,300,000     5,800,000  
 

 
Westgate recognizes revenue over time according to percentage of completion.

 

 

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. (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.)
 

  2021 2022 2023
Costs incurred during the year $ 2,100,000   $ 3,900,000   $ 4,200,000  
Estimated costs to complete as of year-end   4,900,000     4,300,000     0  
 
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