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    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 $2,581,000 $3,845,000 $4,035,000 Estimated costs to complete as of year-end 6,319,000 4,190,000 0   2021 2022 2023 Revenue __________________ ________________ ________________ Gross profit (loss) __________________ ________________ _________________

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                                       $2,581,000              $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 

 

  1. 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                                       $2,581,000            $3,845,000     $4,035,000

Estimated costs to complete as of year-end                  6,319,000               4,190,000                      0

 

                                                          2021                              2022                               2023

Revenue                        __________________   ________________   ________________

Gross profit (loss)        __________________   ________________   _________________ 

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