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: 2024 2025 2026 Cost incurred during the year $ 2,100,000 $ 3,150,000 $ 2,475,000 Estimated costs to complete as of year-end 5,400,000 2,250,000 0 Billings during the year 2,150,000 3,100,000 4,750,000 Cash collections during the year 1,875,000 3,100,000 5,025,000 Westgate recognizes revenue over time according to percentage of completion. 2024 2025 2026 Costs incurred during the year $ 2,100,000 $ 3,875,000 $ 3,275,000 Estimated costs to complete as of year-end 5,400,000 3,175,000 0 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.
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: 2024 2025 2026 Cost incurred during the year $ 2,100,000 $ 3,150,000 $ 2,475,000 Estimated costs to complete as of year-end 5,400,000 2,250,000 0 Billings during the year 2,150,000 3,100,000 4,750,000 Cash collections during the year 1,875,000 3,100,000 5,025,000 Westgate recognizes revenue over time according to percentage of completion. 2024 2025 2026 Costs incurred during the year $ 2,100,000 $ 3,875,000 $ 3,275,000 Estimated costs to complete as of year-end 5,400,000 3,175,000 0 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,100,000 | $ 3,150,000 | $ 2,475,000 |
| Estimated costs to complete as of year-end | 5,400,000 | 2,250,000 | 0 |
| Billings during the year | 2,150,000 | 3,100,000 | 4,750,000 |
| Cash collections during the year | 1,875,000 | 3,100,000 | 5,025,000 |
Westgate recognizes revenue over time according to percentage of completion.
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Costs incurred during the year | $ 2,100,000 | $ 3,875,000 | $ 3,275,000 |
| Estimated costs to complete as of year-end | 5,400,000 | 3,175,000 | 0 |
1. Calculate the amount of revenue and gross
Transcribed Image Text:### Financial Projections Table (2024-2026)
#### Revenue and Gross Profit (Loss)
The table below provides an overview of projected financial figures for the years 2024, 2025, and 2026. The data includes revenue and gross profit (loss).
**2024:**
- **Revenue:** $2,800,000
- **Gross Profit (Loss):** $700,000
**2025:**
- Both revenue and gross profit (loss) figures are not provided.
**2026:**
- Both revenue and gross profit (loss) figures are not provided.
The table features a simple layout with the years listed across the top and the financial categories on the side. It primarily focuses on 2024, with placeholders indicating future values for 2025 and 2026 to be determined or updated later.
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