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Req 1 Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. 2024 2025 2026 Reg 2A Revenue Gross profit (loss) Req 2B Req 2C

Req 1 Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. 2024 2025 2026 Reg 2A Revenue Gross profit (loss) Req 2B Req 2C

FINANCIAL ACCOUNTING
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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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 $2,400,000 5,600,000 2,000,000 1,800,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred). Cost incurred during the year Estimated costs to complete as of year-end 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. 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. Req 1 Complete this question by entering your answers in the tabs below. Req 2A Revenue Gross profit (loss) Cost incurred during the year Estimated costs to complete as of year-end 5. 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. 2025 $ 3,800,000 4,100,000 Req 2B 2024 2024 $ 2,400,000 5,600,000 Req 2C 2025 2024 $ 2,400,000 5,600,000 2026 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 Req 3 2025 $ 3,800,000 3,100,000 2026 $ 2,200,000 0 Req 4 4,000,000 4,600,000 Req 5 2026 $ 3,200,000 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. 0 2026 $ 3,900,000 0
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: 2024 $2,400,000 5,600,000 2,000,000 1,800,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred). Cost incurred during the year Estimated costs to complete as of year-end 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. 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. Req 1 Complete this question by entering your answers in the tabs below. Req 2A Revenue Gross profit (loss) Cost incurred during the year Estimated costs to complete as of year-end 5. 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. 2025 $ 3,800,000 4,100,000 Req 2B 2024 2024 $ 2,400,000 5,600,000 Req 2C 2025 2024 $ 2,400,000 5,600,000 2026 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 Req 3 2025 $ 3,800,000 3,100,000 2026 $ 2,200,000 0 Req 4 4,000,000 4,600,000 Req 5 2026 $ 3,200,000 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. 0 2026 $ 3,900,000 0
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