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: 2025 Cost incurred during the year 2024 $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 2026 $ 2,008,600 1,826,000 4,444,000 3,900,000 3,526,000 4,285,000 Estimated costs to complete as of year-end Billings during the year. Cash collections during the year 1,815,000 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 2024 $ 2,490,000 5,810,000 2025 $ 3,815,000 3,115,000 2026 $ 3,215,000 Revenue Gross profit (loss) 2024 2025 2026
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: 2025 Cost incurred during the year 2024 $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 2026 $ 2,008,600 1,826,000 4,444,000 3,900,000 3,526,000 4,285,000 Estimated costs to complete as of year-end Billings during the year. Cash collections during the year 1,815,000 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 2024 $ 2,490,000 5,810,000 2025 $ 3,815,000 3,115,000 2026 $ 3,215,000 Revenue Gross profit (loss) 2024 2025 2026
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:
2025
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
2024
2026
$ 2,490,000
5,810,000
2,030,000
$ 3,984,000
$ 2,008,600
1,826,000
в
4,444,000
3,900,000
3,526,000
4,285,000
1,815,000
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
2025
2026
$ 2,490,000
5,810,000
$ 3,815,000
3,115,000
$ 3,215,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F250d841f-99b3-433a-9609-1445564f0c70%2Ff0397660-d7a0-4665-bcc3-5b6e58e559d5%2Fq5xc9pm_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:
2025
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
2024
2026
$ 2,490,000
5,810,000
2,030,000
$ 3,984,000
$ 2,008,600
1,826,000
в
4,444,000
3,900,000
3,526,000
4,285,000
1,815,000
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
2025
2026
$ 2,490,000
5,810,000
$ 3,815,000
3,115,000
$ 3,215,000
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