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:
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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,523,000 | $ 3,177,000 | $ 1,980,000 |
| Estimated costs to complete as of year-end | 6,177,000 | 1,800,000 | 0 |
| Billings during the year | 2,070,000 | 3,630,000 | 4,300,000 |
| Cash collections during the year | 1,835,000 | 3,400,000 | 4,765,000 |
Westgate recognizes revenue over time according to percentage of completion.
Calculate the amount of revenue and gross
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
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