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 | $ | 2,542,000 | $ | 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 | 3,800,000 | 4,390,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.
Detailed calculations, please comment for further clarifications:
Balance sheet extract