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 $ 2,400,000 5,600,000 2,000,000 1,800,000 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. 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 2026 $ 2,200,000 4,000,000 4,600,000 Problem 6-10 (Static) Part 3 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.
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 $ 2,400,000 5,600,000 2,000,000 1,800,000 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. 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 2026 $ 2,200,000 4,000,000 4,600,000 Problem 6-10 (Static) Part 3 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
Problem 6-10 (Static) Long-term contract; revenue recognition over time [LO6-8, 6-9]
[The following information applies to the questions displayed below.]
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
2024
$ 2,400,000
5,600,000
2,000,000
1,800,000
Current liabilities:
Accounts receivable
Problem 6-10 (Static) Part 3
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
2025
$ 3,600,000
2,000,000
4,000,000
3,600,000
2025
0
2026
$ 2,200,000
0
4,000,000
4,600,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F117dd759-926b-455c-8e67-9aa5670a6b47%2F620b62ea-f788-40ba-bd68-fcadb7669f1f%2F5fpcxcl_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Problem 6-10 (Static) Long-term contract; revenue recognition over time [LO6-8, 6-9]
[The following information applies to the questions displayed below.]
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
2024
$ 2,400,000
5,600,000
2,000,000
1,800,000
Current liabilities:
Accounts receivable
Problem 6-10 (Static) Part 3
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
2025
$ 3,600,000
2,000,000
4,000,000
3,600,000
2025
0
2026
$ 2,200,000
0
4,000,000
4,600,000
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