In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
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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 $2,523, 000 $3,177, 000 6,177,000 2,070, 000 1,835, 000 $1,980,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 1,800,000 3,630,000 3,400, 000 4,300,e00 4,765,000 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.) 2021 2022 2023 Revenue Gross profit (loss) 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 $2,523, 000 $3,177, 000 6,177,000 2,070, 000 1,835, 000 $1,980,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 1,800,000 3,630,000 3,400, 000 4,300,e00 4,765,000 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.) 2021 2022 2023 Revenue Gross profit (loss)
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Answer Solution 2021 2022 2023 Revenue 2900000 3797567 3302433 Gross profi... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
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