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 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to complete as of year-end 5,256,000 2,628,000 0 Billings during the year 2,170,000 2,502,000 5,328,000 Cash collections during the year 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion.

2a. In the Journal below, complete the necessary journal entries for the year 2021( Credit "various accounts for construction costs

2b In the Journal below, complete the necessary journal entries for the year 2022 ( Credit "various accounts for construction costs

2c In the Journal below, complete the necessary journal entries for the year 2023 ( Credit "various accounts for construction costs

Beavis Construction Company was the low bidder on a construction project to build an office building for $8,000,000. The project was begun in 2017 and completed in 2019. Cost and other data are presented below:

2017 2018 2019

Costs incurred during the year $ 1,500,000 $4,500,000 $1,550,000

Estimated costs to complete 4,500,000 1,500,000 -0-

Billings during the year 1,400,000 5,200,000 1,400,000

Cash collections during the year 1,000,000 4,000,000 3,000,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Also assume that all construction costs are paid in Cash.

Required:

Compute the amount of revenue and gross profit recognized during 2017 and 2018.

Extra credit (9 points):

Prepare the 2018 journal entries to record:

a. Construction costs incurred during the year

b. Billings

c. Cash Collections

d. Revenue Recognition

P18-9 (LO5,6) EXCEL (Recognition of Profit on Long-Term Contract) Shanahan Construction Company has entered into
a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $600,000 and
will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to
the construction period.
2017 2018 2019
Costs to date $270,000 $450,000 $610,000
Estimated costs to complete 330,000 150,000 –0–
Progress billings to date 270,000 550,000 900,000
Cash collected to date 240,000 500,000 900,000

Instructions
(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each
year of the construction period.
(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year
of the construction period.

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $5.8 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $6.1 million. The company wants to build its new manufacturing plant on this land; the plant will cost $13.3 million to build, and the site requires $850,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 12 years ago for $6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $9.8 million. The company wants to build its new manufacturing plant on this land; the plant will cost $13.2 million to build, and the site requires $1,372,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $3.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.1 million. The company wants to build its new manufacturing plant on this land; the plant will cost $18.1 million to build, and the site requires $950,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and completed in 2013. Cost and other data are presented below:

                                                                                    2012                           2013

Costs incurred during the year                               $450,000                $ 1.100,000

Estimated costs to complete 1,050,000                      0

Billings during the year                                            400,000                    1,400,000

Cash collections during the year                             300,000                     1,500,000

Assume that Beavis uses the percentage- of- completion method for revenue recognition.

Required:

Compute the amount of gross profit recognized during 2012 and 2013.

Prepare all journal entries related to the construction project in 2012 and 2013.

Prepare Statement of Financial Position end of 2012 and 2013 (if any).

(please provide the answer step by step)

Mr. Vaughn, a 27-year-old man, is hiking in the woods near his home in the American Midwest. He feels a sharp stinging sensation on his left ankle. As he looks down he sees a dark colored snake moving off the trail into the woods. Mr. Vaughn calls the ED at the local hospital. He tells the nurse what has happened. What should the nurse tell Mr. Vaughn? What actions should the nurse take at this time? Mr. Vaughn is brought to the ED via the paramedics along with a park ranger. The park ranger used the patient's description of the snake and determined that it was a pit viper. What is the priority of care for Mr. Vaughn? When the Mr. Vaughn's wounds are reassessed, the nurse notes heavy bleeding from the puncture site. What should the nurse's next actions be? Why?