! Required information 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 $ 2026 $ Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2,016,000 2,808,000 2,613,600 5,184,000 2,376,000 0 2,180,000 2,644,000 5,176,000 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 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. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. 2024 2025 2026 $ $ $ 2,016,000 5,184,000 3,890,000 4,280,000 4,170,000 0 Costs incurred during the year Estimated costs to complete as of year-end × Answer is complete but not entirely correct. 2024 2025 2026 $ Revenue $ 2,800,000 $2,998,000 4,202,000 Gross profit (loss) $ 784,000 $ (892,000 $912,000×
! Required information 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 $ 2026 $ Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2,016,000 2,808,000 2,613,600 5,184,000 2,376,000 0 2,180,000 2,644,000 5,176,000 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 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. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. 2024 2025 2026 $ $ $ 2,016,000 5,184,000 3,890,000 4,280,000 4,170,000 0 Costs incurred during the year Estimated costs to complete as of year-end × Answer is complete but not entirely correct. 2024 2025 2026 $ Revenue $ 2,800,000 $2,998,000 4,202,000 Gross profit (loss) $ 784,000 $ (892,000 $912,000×
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Required information
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
$
2026
$
Cost incurred during the year
Estimated costs to complete as of
year-end
Billings during the year
Cash collections during the year
2,016,000 2,808,000 2,613,600
5,184,000 2,376,000
0
2,180,000 2,644,000 5,176,000
1,890,000 2,500,000 5,610,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 5
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.
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Loss amounts should be indicated with a minus sign.
2024
2025
2026
$
$
$
2,016,000
5,184,000
3,890,000
4,280,000
4,170,000
0
Costs incurred during the year
Estimated costs to complete as of
year-end
× Answer is complete but not entirely correct.
2024
2025
2026
$
Revenue
$ 2,800,000 $2,998,000
4,202,000
Gross profit
(loss)
$ 784,000 $ (892,000 $912,000×](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff20a814a-46ad-4470-b033-db94cea2b3d6%2F137352cc-efb7-48b6-ad9b-0543815d5c32%2F92v96of_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
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
$
2026
$
Cost incurred during the year
Estimated costs to complete as of
year-end
Billings during the year
Cash collections during the year
2,016,000 2,808,000 2,613,600
5,184,000 2,376,000
0
2,180,000 2,644,000 5,176,000
1,890,000 2,500,000 5,610,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 5
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.
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Loss amounts should be indicated with a minus sign.
2024
2025
2026
$
$
$
2,016,000
5,184,000
3,890,000
4,280,000
4,170,000
0
Costs incurred during the year
Estimated costs to complete as of
year-end
× Answer is complete but not entirely correct.
2024
2025
2026
$
Revenue
$ 2,800,000 $2,998,000
4,202,000
Gross profit
(loss)
$ 784,000 $ (892,000 $912,000×
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