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: 2024 $ 2,100,000 5,400,000 2,150,000 1,875,000 Current liabilities: 2025 $ 3,150,000 2,250,000 3,100,000 3,100,000 2024 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. 2026 $ 2,475,000 2025 0 4,750,000 5,025,000
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: 2024 $ 2,100,000 5,400,000 2,150,000 1,875,000 Current liabilities: 2025 $ 3,150,000 2,250,000 3,100,000 3,100,000 2024 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. 2026 $ 2,475,000 2025 0 4,750,000 5,025,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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