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: 2025 $3,162,000 2,028,000 3,672,000 3,000,000 2024 Cost incurred during the year $ 2,610,000 6,390,000 Estimated costs to complete as of year-end Billings during the year 2,100,000 Cash collections during the year 1,850,000 Westgate recognizes revenue over time according to percentage of completion. 2026 $ 2,230,800 0 4,228,000 5,150,000 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Balance Sheet (Partial)
Current assets:
Accounts receivable
Construction in progress
Less: Billings
2024
$ 2,610,000
6,390,000
2,100,000
1,850,000
Current liabilities:
Billings in excess of CIP
2024
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.
2025
$ 3,162,000
2,028,000
3,672,000
3,000,000
0
0
2025
0
2026
$2,230,800
0
0
4,228,000
5,150,000
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. Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings 2024 $ 2,610,000 6,390,000 2,100,000 1,850,000 Current liabilities: Billings in excess of CIP 2024 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. 2025 $ 3,162,000 2,028,000 3,672,000 3,000,000 0 0 2025 0 2026 $2,230,800 0 0 4,228,000 5,150,000
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