In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County f $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 $ 2,204,000 5,396,000 2,140,000 1,870,000 2025 $ 3,192,000 2,204,000 3,256,000 3,200,000 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. 2026 $ 2,424,400 0 4,604,000 4,930,000
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County f $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 $ 2,204,000 5,396,000 2,140,000 1,870,000 2025 $ 3,192,000 2,204,000 3,256,000 3,200,000 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. 2026 $ 2,424,400 0 4,604,000 4,930,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with calculation
![Required information
[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.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2025
$ 2,204,000 $ 3,192,000
5,396,000
2,204,000
2,140,000
3,256,000
1,870,000
3,200,000
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
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.
2025
2026
2026
$ 2,424,400
2024
$ 2,204,000
5,396,000
0
2025
$ 3,870,000
3,170,000
4,604,000
4,930,000
2026
$ 3,270,000
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cc7f50f-d138-49da-9b74-46f891cdbc24%2Fa4856893-74f1-4750-a257-f0293726eb11%2Fn1kqmzd4_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2025
$ 2,204,000 $ 3,192,000
5,396,000
2,204,000
2,140,000
3,256,000
1,870,000
3,200,000
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
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.
2025
2026
2026
$ 2,424,400
2024
$ 2,204,000
5,396,000
0
2025
$ 3,870,000
3,170,000
4,604,000
4,930,000
2026
$ 3,270,000
0
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