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 2025 2024 $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 1,826,000 4,444,000 2026 $ 2,008,600 0 3,526,000 1,815,000 3,900,000 4,285,000 Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 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. Revenue Gross profit (loss) 2024 2025 2026
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 2025 2024 $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 1,826,000 4,444,000 2026 $ 2,008,600 0 3,526,000 1,815,000 3,900,000 4,285,000 Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 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. Revenue Gross profit (loss) 2024 2025 2026
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Urmila
![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
2025
2024
$ 2,490,000
5,810,000
2,030,000
$ 3,984,000
1,826,000
4,444,000
2026
$ 2,008,600
0
3,526,000
1,815,000
3,900,000
4,285,000
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
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.
Revenue
Gross profit (loss)
2024
2025
2026](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2107195e-7f8f-49fa-90af-dbb3bd7f79df%2Fc66d2ce9-92ef-4b50-872d-bfba9dd6594e%2Fq10g3pr_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
2025
2024
$ 2,490,000
5,810,000
2,030,000
$ 3,984,000
1,826,000
4,444,000
2026
$ 2,008,600
0
3,526,000
1,815,000
3,900,000
4,285,000
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
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.
Revenue
Gross profit (loss)
2024
2025
2026
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