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. Revenue Gross profit (loss) $ $ Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. 2024 2,800,000 728,000 2024 $ 2,072,000 5,328,000 2,160,000 1,880,000 2025 2025 $ 2,738,000 2,590,000 2,650,000 2,700,000 2026 2026 $ 2,849,000 0 5,190,000 5,420,000
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. Revenue Gross profit (loss) $ $ Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. 2024 2,800,000 728,000 2024 $ 2,072,000 5,328,000 2,160,000 1,880,000 2025 2025 $ 2,738,000 2,590,000 2,650,000 2,700,000 2026 2026 $ 2,849,000 0 5,190,000 5,420,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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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:
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.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
Revenue
Gross profit (loss)
$
$
2024
2,800,000
728,000
2024
2025
2026
$ 2,072,000 $ 2,738,000 $ 2,849,000
5,328,000
2,590,000
2,650,000
2,160,000
1,880,000
2,700,000
2025
2026
0
5,190,000
5,420,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff0a4e976-3597-4de8-93c3-f330d3be0980%2Facf41777-8050-44af-afbf-16a7224d08c1%2F5rlpgdu_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
Revenue
Gross profit (loss)
$
$
2024
2,800,000
728,000
2024
2025
2026
$ 2,072,000 $ 2,738,000 $ 2,849,000
5,328,000
2,590,000
2,650,000
2,160,000
1,880,000
2,700,000
2025
2026
0
5,190,000
5,420,000
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