Question: Problem 6-10 (Static) Long-term contract; revenue recognition over time [LO6-8, 6-9] Skip to question [The following information applies to the questions displayed below.] In 2024,
Problem 6-10 (Static) Long-term contract; revenue recognition over time [LO6-8, 6-9]
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[The following information applies to the questions displayed below.]
In 2024, 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 2026. Information related to the contract is as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,400,000 | $ 3,600,000 | $ 2,200,000 |
| Estimated costs to complete as of year-end | 5,600,000 | 2,000,000 | 0 |
| Billings during the year | 2,000,000 | 4,000,000 | 4,000,000 |
| Cash collections during the year | 1,800,000 | 3,600,000 | 4,600,000 |
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Static) Part 3
3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract.
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