Required information Skip to question [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 $ 2,059,000 $ 2,627,000 $2,655,400 Estimated costs to complete as of year - end 5,041,000 2,414, 000 0 Billings during the year 2,190,000 2,496,000 5,314,000 Cash collections during the year 1,895, 000 2,400, 000 5,705,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal. entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

7

Required information Skip to question [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 S
2,059,000 $ 2,627,000 $ 2,655,400 Estimated costs to complete as of year - end
5,041,000 2,414, 000 0 Billings during the year 2,190,000 2,496,000 5,314,000 Cash collections
during the year 1,895, 000 2,400,000 5, 705,000 Westgate recognizes revenue over time
according to percentage of completion. 2-a. In the journal below, complete the necessary journal
entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In
the journal below, complete the necessary journal entries for the year 2025 (credit "Cash,
Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the
necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs
incurred).
Transcribed Image Text:Required information Skip to question [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 S 2,059,000 $ 2,627,000 $ 2,655,400 Estimated costs to complete as of year - end 5,041,000 2,414, 000 0 Billings during the year 2,190,000 2,496,000 5,314,000 Cash collections during the year 1,895, 000 2,400,000 5, 705,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit "Cash, Materials, etc." for construction costs incurred).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education