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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) $ $ 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following incurred and costs to complete information. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss ame should be indicated with a minus sign. 2024 2,800,000 616,000 2025 2024 2025 $ 2,184,000 $ 3,510,000 5,616,000 2,106,000 2,120,000 3,574,000 1,860,000 3,400,000 2026 2024 $ 2,184,000 5,616,000 2026 $ 2,316,600 2025 $ 3,860,000 3,160,000 4,306,000 4,740,000 0 2026 $ 3,260,000 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Westgate recognizes revenue over time according to percentage of completion.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
$
$
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following co
incurred and costs to complete information.
2024
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amour
should be indicated with a minus sign.
2,800,000
616,000
2024
2025
$ 2,184,000 $ 3,510,000
5,616,000
2,106,000
3,574,000
3,400,000
2025
2,120,000
1,860,000
2026
2026
$ 2,316,600
2024
$ 2,184,000
5,616,000
2025
$ 3,860,000
3,160,000
4,306,000
4,740,000
0
2026
$ 3,260,000
0
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. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) $ $ 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following co incurred and costs to complete information. 2024 Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amour should be indicated with a minus sign. 2,800,000 616,000 2024 2025 $ 2,184,000 $ 3,510,000 5,616,000 2,106,000 3,574,000 3,400,000 2025 2,120,000 1,860,000 2026 2026 $ 2,316,600 2024 $ 2,184,000 5,616,000 2025 $ 3,860,000 3,160,000 4,306,000 4,740,000 0 2026 $ 3,260,000 0
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