Required information [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. Revenue Gross profit (loss) 2024 2024 $ 2,184,000 5,616,000 2,120,000 1,860,000 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. 2025 2026 2025 $ 3,510,000 2,106,000 3,574,000 3,400,000 A 2026 $ 2,316,600 0 4,306,000 4,740,000
Required information [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. Revenue Gross profit (loss) 2024 2024 $ 2,184,000 5,616,000 2,120,000 1,860,000 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. 2025 2026 2025 $ 3,510,000 2,106,000 3,574,000 3,400,000 A 2026 $ 2,316,600 0 4,306,000 4,740,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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Domestic
![Required information
[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.
Revenue
Gross profit (loss)
2024
2024
$ 2,184,000
5,616,000
2,120,000
1,860,000
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.
2025
2025
$ 3,510,000
2,106,000
3,574,000
3,400,000
2026
2026
$ 2,316,600
0
4,306,000
4,740,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54fafca2-4b19-42e1-b57a-4faba095a1ec%2F09edf10f-fd11-4474-a494-4deeaeb80ddb%2Fibs6c4w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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.
Revenue
Gross profit (loss)
2024
2024
$ 2,184,000
5,616,000
2,120,000
1,860,000
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.
2025
2025
$ 3,510,000
2,106,000
3,574,000
3,400,000
2026
2026
$ 2,316,600
0
4,306,000
4,740,000
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