contract
Can you help with question 1-5 in attached, thanks so much.
![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:
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year.
Cost incurred during the year
Estimated costs to complete as of year-end
Cost incurred during the year
Estimated costs to complete as of year-end
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs
incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs
incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the
contract.
4. 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.
Req 1
Req 2A
Revenue
Gross profit (loss)
Req 2B
2021
2021
$3,471,000
5,429,000
2,900,000
2,700,000
Complete this question by entering your answers in the tabs below.
5. 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.
Req 2C
2022
2021
$2,490,000
5,690,000
< Req 1
2021
$2,490,000
5,690,000
2022
$4,005,000
1,424,000
4,576,000
4,500,000
2022
$3,845,000
3,190,000
Req 3
2023
2022
$3,845,000
4,190,000
2023
$1,566,400
Reg 4
2,524,000
2,800,000
Req 2A >
2023
$3,290,000
0
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - be
certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)
0
2023
$4,035,000
Req 5
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F226cabfc-cda6-44ca-8e90-8de2ee02b410%2Fqbx0um_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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 | $ 3,471,000 | $ 4,005,000 | $ 1,566,400 |
Estimated costs to complete as of year-end | 5,429,000 | 1,424,000 | 0 |
Billings during the year | 2,900,000 | 4,576,000 | 2,524,000 |
Cash collections during the year | 2,700,000 | 4,500,000 | 2,800,000 |
Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross
2-a. In the journal below, complete the necessary
2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit “Cash, Materials, etc.” for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit “Cash, Materials, etc.” for construction costs incurred).
3. Complete the information required below to prepare a partial
4. 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.
2024 | 2025 | 2026 | |
---|---|---|---|
Cost incurred during the year | $ 2,490,000 | $ 3,845,000 | $ 3,290,000 |
Estimated costs to complete as of year-end | 5,690,000 | 3,190,000 | 0 |
5. 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.
2024 | 2025 | 2026 | |
---|---|---|---|
Cost incurred during the year | $ 2,490,000 | $ 3,845,000 | $ 4,035,000 |
Estimated costs to complete as of year-end | 5,690,000 | 4,190,000 | 0 |
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)