In: Accounting
In 2018, 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 2020. Information related to the contract is as follows:
2018 | 2019 | 2020 | |||||||
Cost incurred during the year | $ | 2,580,000 | $ | 4,042,000 | $ | 2,175,800 | |||
Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 | ||||||
Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 | ||||||
Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
2-a. In the journal below, complete the
necessary journal entries for the year 2018 (credit "Various
accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary
journal entries for the year 2019 (credit "Various accounts" for
construction costs incurred).
2-c. In the journal below, complete the necessary
journal entries for the year 2020 (credit "Various accounts" for
construction costs incurred).
Complete this question by entering your answers in the tabs below.
In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
No | Date | General Journal | Debit |
---|
Year | Cost incurred to date $ | Cumulative Cost incurred $ | Cumulative Completion % | Year on Year % | Estimated cost | Billings | Cash collections | profit as per % billing | Difference | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2580000 | 2580000 | 29.33 | 29.33 | 6020000 | 2060000 | 1830000 | 2933000 | -1103000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 4042000 | 6622000 | 75.27 | 45.94 | 1978000 | 4562000 | 4200000 | 4594000 | -394000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2175800 | 8797800 | 100 | 24.73 | 3378000 | 3970000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8797800 | 7998000 | 10000000 | 10000000 |
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