Munabhai !Required informationProblem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9][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$10,000,000. The road was completed in 2026. Information related to the contract is as follows:Cost incurred during the yearEstimated costs to complete as of year-endBillings during the yearCash collections during the yearWestgate recognizes revenue over time according to percentage of completion.Costs incurred during the yearEstimated costs to complete as of year-end2024$ 2,604,0005,796,0002,040,0001,820,000RevenueGross profit (loss)2024Problem 6-10 (Algo) Part 55. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costsncurred and costs to complete information.20252025$ 4,032,0001,764,0004,596,0004,000,000Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amountshould be indicated with a minus sign.2024$ 2,604,0005,796,0002026$ 1,940,400202603,364,0004,180,00020252026$ 3,820,000 $ 3,960,0004,140,0000

Using percentage of completion method, the gross profit is recognized on the basis of the percentage…

Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [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: 2024 2025 $ 2,604,000 $ 4,032,000 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. 5,796,000 2,040,000 1,820,000 Costs incurred during the year. Estimated costs to complete as of year-end 1,764,000 4,596,000 4,000,000 2024 $ 2,604,000 5,796,000 2026 $ 1,940,400 roblem 6-10 (Algo) Part 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs curred and costs to complete information. ote: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts ould be indicated with a minus sign. 2025 $ 3,820,000 4,140,000 0 3,364,000 4,180,000 2026 $ 3,960,000

Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [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: 2024 2025 $ 2,604,000 $ 4,032,000 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. 5,796,000 2,040,000 1,820,000 Costs incurred during the year. Estimated costs to complete as of year-end 1,764,000 4,596,000 4,000,000 2024 $ 2,604,000 5,796,000 2026 $ 1,940,400 roblem 6-10 (Algo) Part 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs curred and costs to complete information. ote: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts ould be indicated with a minus sign. 2025 $ 3,820,000 4,140,000 0 3,364,000 4,180,000 2026 $ 3,960,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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