! Required information Problem 6-10 (Static) 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 2025 2024 2026 Estimated costs to complete as of year-end Billings during the year Cash collections during the year $ 2,400,000 5,600,000 2,000,000 $ 3,600,000 $ 2,200,000 2,000,000 0 4,000,000 4,000,000 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Static) 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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2026 2024 2025 2026 $ 2,400,000 5,600,000 $ 3,800,000 4,100,000 $ 3,900,000 0
! Required information Problem 6-10 (Static) 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 2025 2024 2026 Estimated costs to complete as of year-end Billings during the year Cash collections during the year $ 2,400,000 5,600,000 2,000,000 $ 3,600,000 $ 2,200,000 2,000,000 0 4,000,000 4,000,000 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Static) 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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) 2024 2025 2026 2024 2025 2026 $ 2,400,000 5,600,000 $ 3,800,000 4,100,000 $ 3,900,000 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
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Required information
Problem 6-10 (Static) 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
2025
2024
2026
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
$ 2,400,000
5,600,000
2,000,000
$ 3,600,000
$ 2,200,000
2,000,000
0
4,000,000
4,000,000
1,800,000
3,600,000
4,600,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Static) 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.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2025
2026
2024
2025
2026
$ 2,400,000
5,600,000
$ 3,800,000
4,100,000
$ 3,900,000
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F040a89f9-242f-446e-a345-bd48c0fe9655%2Fcedb4afc-8088-45d9-9bc8-c9923c937eee%2Fvpsxjhd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 6-10 (Static) 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
2025
2024
2026
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
$ 2,400,000
5,600,000
2,000,000
$ 3,600,000
$ 2,200,000
2,000,000
0
4,000,000
4,000,000
1,800,000
3,600,000
4,600,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Static) 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.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2025
2026
2024
2025
2026
$ 2,400,000
5,600,000
$ 3,800,000
4,100,000
$ 3,900,000
0
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