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: Cost incurred during the year Estimated costs to complete as of year-end 2024 $ 2,059,000 5,041,000 2,190,000 2025 $ 2,627,000 2,414,000 2,496,000 2026 $ 2,655,400 0 1,895,000 2,400,000 5,314,000 5,705,000 Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 4 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. 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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2026 2024 $ 2,059,000 5,041,000 2025 $3,895,000 3,195,000 2026 $ 3,295,000 0
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: Cost incurred during the year Estimated costs to complete as of year-end 2024 $ 2,059,000 5,041,000 2,190,000 2025 $ 2,627,000 2,414,000 2,496,000 2026 $ 2,655,400 0 1,895,000 2,400,000 5,314,000 5,705,000 Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 4 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. 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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2026 2024 $ 2,059,000 5,041,000 2025 $3,895,000 3,195,000 2026 $ 3,295,000 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
![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:
Cost incurred during the year
Estimated costs to complete as of year-end
2024
$ 2,059,000
5,041,000
2,190,000
2025
$ 2,627,000
2,414,000
2,496,000
2026
$ 2,655,400
0
1,895,000
2,400,000
5,314,000
5,705,000
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 4
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.
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.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2025
2026
2024
$ 2,059,000
5,041,000
2025
$3,895,000
3,195,000
2026
$ 3,295,000
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95f4e412-1b9d-4da1-bc5a-2aa29c6b60b5%2Fa563d1ef-f641-4f13-aa75-77acfcd28a51%2Fg4ipnv_processed.jpeg&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:
Cost incurred during the year
Estimated costs to complete as of year-end
2024
$ 2,059,000
5,041,000
2,190,000
2025
$ 2,627,000
2,414,000
2,496,000
2026
$ 2,655,400
0
1,895,000
2,400,000
5,314,000
5,705,000
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 4
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.
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.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2025
2026
2024
$ 2,059,000
5,041,000
2025
$3,895,000
3,195,000
2026
$ 3,295,000
0
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