In 2024, 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 2026. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings CIP in excess of billings Current liabilities: . Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the Contract. Note: Do not round intermediate calculations. 2024 $ 2,800,000 (2,160,000) $ 0 0 2024 $ 2,072,000 5,328,000 2,160,000 1,880,000 $ 640,000 0 0 2025 $ 2,738,000 2,590,000 2,650,000 2,700,000 $ 2025 0 0 $ 0 2026 $ 2,849,000 0 0 5,190,000 5,420,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In 2024, 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 2026. Information related to the contract is as follows:
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
Balance Sheet (Partial)
Current assets:
Accounts receivable
Construction in progress
Less: Billings
CIP in excess of billings
Current liabilities:
3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the
contract.
Note: Do not round intermediate calculations.
2024
$ 2,800,000
(2,160,000)
$
0
0
69
640,000
2024
$ 2,072,000
5,328,000
2,160,000
1,880,000
0
0
2025
$ 2,738,000
2,590,000
2,650,000
2,700,000
$
2025
0
0
$
0
0
2026
$ 2,849,000
0
0
5,190,000
5,420,000
Transcribed Image Text:In 2024, 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 2026. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings CIP in excess of billings Current liabilities: 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. Note: Do not round intermediate calculations. 2024 $ 2,800,000 (2,160,000) $ 0 0 69 640,000 2024 $ 2,072,000 5,328,000 2,160,000 1,880,000 0 0 2025 $ 2,738,000 2,590,000 2,650,000 2,700,000 $ 2025 0 0 $ 0 0 2026 $ 2,849,000 0 0 5,190,000 5,420,000
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