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 2024 $ 2,542,000 5,658,000 2,020,000 2025 1,810,000 $ 3,772,000 1,886,000 4,294,000 3,800,000 2026 $ 2,074,600 0 3,686,000 4,390,000 Westgate recognizes revenue over time according to percentage of completion. S 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 $ 2,542,000 5,658,000 2025 $ 3,810,000 3,110,000 2026 $ 3,210,000 0
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 2024 $ 2,542,000 5,658,000 2,020,000 2025 1,810,000 $ 3,772,000 1,886,000 4,294,000 3,800,000 2026 $ 2,074,600 0 3,686,000 4,390,000 Westgate recognizes revenue over time according to percentage of completion. S 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 $ 2,542,000 5,658,000 2025 $ 3,810,000 3,110,000 2026 $ 3,210,000 0
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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![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
2024
$ 2,542,000
5,658,000
2,020,000
2025
1,810,000
$ 3,772,000
1,886,000
4,294,000
3,800,000
2026
$ 2,074,600
0
3,686,000
4,390,000
Westgate recognizes revenue over time according to percentage of completion.
S
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
$ 2,542,000
5,658,000
2025
$ 3,810,000
3,110,000
2026
$ 3,210,000
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcff8acf3-e89e-4d78-a8cc-0daf2c45ca49%2Fa753d186-6bd5-43d3-a2ff-ea74f9d86bbb%2Fcu3fum_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
2024
$ 2,542,000
5,658,000
2,020,000
2025
1,810,000
$ 3,772,000
1,886,000
4,294,000
3,800,000
2026
$ 2,074,600
0
3,686,000
4,390,000
Westgate recognizes revenue over time according to percentage of completion.
S
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
$ 2,542,000
5,658,000
2025
$ 3,810,000
3,110,000
2026
$ 3,210,000
0
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