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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: 2024 Cost incurred during the year $ 2,400,000 Estimated costs to complete as of year-end 5,600,000 Billings during the year 2,000,000 2025 $ 3,600,000 2,000,000 4,000,000 2026 $ 2,200,000 0 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. 5. 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.

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: 2024 Cost incurred during the year $ 2,400,000 Estimated costs to complete as of year-end 5,600,000 Billings during the year 2,000,000 2025 $ 3,600,000 2,000,000 4,000,000 2026 $ 2,200,000 0 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. 5. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 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 2024 $ 2,400,000 5,600,000 2,000,000 2025 2026 Cash collections during the year 1,800,000 $ 3,600,000 2,000,000 4,000,000 3,600,000 $ 2,200,000 0 4,000,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. 5. 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 2024 $ 2,400,000 5,600,000 2025 $ 3,800,000 4,100,000 2026 $ 3,900,000 0 Estimated costs to complete as of year-end × Answer is complete but not entirely correct. Revenue Gross profit (loss) 2024 2025 2026 $ SA 3,000,000 $ 3,019,418 $ 3,980,582 69 $ 600,000 $ (780,582) > $ 80,582 ×
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 2024 $ 2,400,000 5,600,000 2,000,000 2025 2026 Cash collections during the year 1,800,000 $ 3,600,000 2,000,000 4,000,000 3,600,000 $ 2,200,000 0 4,000,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. 5. 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 2024 $ 2,400,000 5,600,000 2025 $ 3,800,000 4,100,000 2026 $ 3,900,000 0 Estimated costs to complete as of year-end × Answer is complete but not entirely correct. Revenue Gross profit (loss) 2024 2025 2026 $ SA 3,000,000 $ 3,019,418 $ 3,980,582 69 $ 600,000 $ (780,582) > $ 80,582 ×
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