Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara C $10,000,000. The road was completed in 2023. 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 2021 2022 $2,640,000 $2,300,000 6,160,000 2,660,000 2,080,000 2,860,000 5,060,000 1,840,000 2,800,000 5,360,000 2023 $2,926,000
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara C $10,000,000. The road was completed in 2023. 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 2021 2022 $2,640,000 $2,300,000 6,160,000 2,660,000 2,080,000 2,860,000 5,060,000 1,840,000 2,800,000 5,360,000 2023 $2,926,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
In 2021, 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 2023. 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.
Balance Sheet (Partial)
Current assets:
2021
2022
$2,640,000 $2,300,000
6,160,000 2,660,000
2,080,000 2,860,000
1,840,000 2,800,000
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the
contract. (Do not round intermediate calculations.)
Current liabilities:
2021
0
2023
$2,926,000
2022
5,060,000
5,360,000
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Ffd109254-065b-4d13-9318-a812abf2867c%2F7z0881m_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
In 2021, 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 2023. 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.
Balance Sheet (Partial)
Current assets:
2021
2022
$2,640,000 $2,300,000
6,160,000 2,660,000
2,080,000 2,860,000
1,840,000 2,800,000
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the
contract. (Do not round intermediate calculations.)
Current liabilities:
2021
0
2023
$2,926,000
2022
5,060,000
5,360,000
0
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