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:Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) **Required Information***(The following information applies to the questions displayed below.)*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.**3.** Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. *(Do not round intermediate calculations.)***Balance Sheet (Partial)**| | 2021 | 2022 ||--------------------|------|------|| Current assets: | | || | | || | | || | | || Current liabilities: | 0 | 0 |Fill in the appropriate values for each line item based on the financial operations for the years 2021 and 2022.

Capital wip=Cost incurred/total expected cost*total revenue

Answered: In 2021, the Westgate Construction…

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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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:

Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.)

**Required Information**

*(The following information applies to the questions displayed below.)*

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.

**3.** Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. *(Do not round intermediate calculations.)*

**Balance Sheet (Partial)**

| | 2021 | 2022 |
|--------------------|------|------|
| Current assets: | | |
| | | |
| | | |
| | | |
| Current liabilities: | 0 | 0 |

Fill in the appropriate values for each line item based on the financial operations for the years 2021 and 2022.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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