Question
In: Accounting
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...
Required information
[The following information applies to the questions
displayed below.]
In 2021, 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 2023. Information related to the contract is
as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,204,000 | $ | 3,192,000 | $ | 2,424,400 | |||
| Estimated costs to complete as of year-end | 5,396,000 | 2,204,000 | 0 | ||||||
| Billings during the year | 2,140,000 | 3,256,000 | 4,604,000 | ||||||
| Cash collections during the year | 1,870,000 | 3,200,000 | 4,930,000 | ||||||
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.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...
Required information
[The following information applies to the questions
displayed below.]
In 2021, 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 2023. Information related to the contract is
as follows:
2021
2022
2023
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...
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...
Required information
[The following information applies to the questions
displayed below.]
In 2021, 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 2023. Information related to the contract is
as follows:
2021
2022
2023
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...
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...
Required information
[The following information applies to the questions
displayed below.]
In 2021, 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 2023. Information related to the contract is
as follows:
2021
2022
2023
Cost incurred during the year
$
2,640,000
$
2,300,000
$
2,926,000
Estimated costs to complete as of year-end
6,160,000
2,660,000
0
Billings during the year
2,080,000
2,860,000
5,060,000
Cash collections during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information [The following information applies to the
questions displayed below.] 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 $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs
to complete as of year-end 5,810,000 1,826,000 0 Billings during
the year 2,030,000 4,444,000 3,526,000 Cash collections during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information
[The following
information applies to the questions displayed
below.]
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
$
2,204,000
$
3,192,000
$
2,424,400
Estimated costs
to complete as of year-end
5,396,000
2,204,000
0
Billings during
the year
2,140,000
3,256,000
4,604,000
Cash collections
during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information
[The following
information applies to the questions displayed
below.]
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
$
2,204,000
$
3,192,000
$
2,424,400
Estimated costs
to complete as of year-end
5,396,000
2,204,000
0
Billings during
the year
2,140,000
3,256,000
4,604,000
Cash collections
during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information
[The following
information applies to the questions displayed
below.]
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
$
2,204,000
$
3,192,000
$
2,424,400
Estimated costs
to complete as of year-end
5,396,000
2,204,000
0
Billings during
the year
2,140,000
3,256,000
4,604,000
Cash collections
during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information
[The following information applies to the questions
displayed below.]
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
$
2,604,000
$
4,032,000
$
1,940,400
Estimated costs to complete as of year-end
5,796,000
1,764,000
0
Billings during the year
2,040,000
4,596,000
3,364,000
Cash collections during the...
[The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered...
[The following information applies to the questions
displayed below.]
In 2021, 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 2023. Information related to the contract is
as follows:
2021
2022
2023
Cost incurred during the year
$
2,100,000
$
2,450,000
$
2,695,000
Estimated costs to complete as of year-end
4,900,000
2,450,000
0
Billings during the year
2,200,000
2,350,000
5,450,000
Cash collections during the year
1,900,000...
[The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered...
[The following information applies to the questions
displayed below.]
In 2021, 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 2023. Information related to the contract is
as follows:
2021
2022
2023
Cost incurred during the year
$
2,542,000
$
3,772,000
$
2,074,600
Estimated costs to complete as of year-end
5,658,000
1,886,000
0
Billings during the year
2,020,000
4,294,000
3,686,000
Cash collections during the year
1,810,000...
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