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: Problem 6-10 (Algo) Part 1 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. Revenue Gross profit (loss) Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round Intermediate calculations. Loss amounts should be indicated with a minus sign. 2024 2024 $ 2,044,000 5,256.000 2,170,000 1,885,000 2025 2025 $ 2,628,000 2,628,000 2,502.000 2,600,000 2026 2026 $ 2.890,800 0 5,328,000 5.515.000
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: Problem 6-10 (Algo) Part 1 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. Revenue Gross profit (loss) Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round Intermediate calculations. Loss amounts should be indicated with a minus sign. 2024 2024 $ 2,044,000 5,256.000 2,170,000 1,885,000 2025 2025 $ 2,628,000 2,628,000 2,502.000 2,600,000 2026 2026 $ 2.890,800 0 5,328,000 5.515.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
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.
Problem 6-10 (Algo) Part 1
Revenue
Gross profit (loss)
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round Intermediate calculations. Loss amounts should be indicated with a minus sign.
2024
2024
$ 2,044,000
5,256,000
2,170,000
1,885,000
2025
2026
2025
$ 2,628,000
2,628,000
2,502,000
2,600,000
2026
$ 2,890,800
0
5.328,000
5,515,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F114e7732-16de-4cbe-b67b-6d074c4b6fff%2Fb05c0813-d246-46e7-815b-6b1b1ddb4a79%2Fpzadajk_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:
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.
Problem 6-10 (Algo) Part 1
Revenue
Gross profit (loss)
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round Intermediate calculations. Loss amounts should be indicated with a minus sign.
2024
2024
$ 2,044,000
5,256,000
2,170,000
1,885,000
2025
2026
2025
$ 2,628,000
2,628,000
2,502,000
2,600,000
2026
$ 2,890,800
0
5.328,000
5,515,000
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