Required information

Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$

$[$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:

Problem $6-10($Algo$)$ Part $1$

Required:

Calculate the amount of revenue and gross profit $($loss$)$ to be recognized in each of the three years.

Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Required information

Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$

$[$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:

Westgate recognizes revenue over time according to percentage of completion.

Problem $6-10($Algo$)$ Part $2$

$2-$a$.$ In the journal below, complete the necessary journal entries for the year $2024($credit "Cash,

Materials, etc." for construction costs incurred$).$

$2-$b$.$ In the journal below, complete the necessary journal entries for the year $2025($credit "Cash,

Materials, etc." for construction costs incurred$).$

$2-$c$.$ In the journal below, complete the necessary journal entries for the year $2026($credit "Cash,

Materials, etc." for construction costs incurred$).$

Complete this question by entering your answers in the tabs below.

In the journal below, complete the necessary journal entries for the year $2024($credit "Cash,

Materials, etc." for construction costs incurred$).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the

account field.

Journal entry worksheet

Record construction costs.

Note: Enter debits before credits. Required information

Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$

$[$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:

$\backslash$table$[[,2024,2025,2026],[$Cost incurred during the year,$2,580,000,4,042,000,2,175,800],[$Estimated costs to complete as of$,6,020,000,1,978,000,0],[$year$-$end,$2,060,000,4,562,000,3,378,000],[$Billings during the year,$1,830,000,4,200,000,3,970,000]]$

Westgate recognizes revenue over time according to percentage of completion.

Problem $6-10($Algo$)$ 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.

Note: Do not round intermediate calculations.

$\backslash$table$[[$Balance Sheet $($Partial$),2024,2025],[$Current assets:,,,,$],[,,,,],[,,,,],[,,,,],[,,0,,],[$Current liabilities:,,,,$],[,,,,],[,,,,],[,,0,,]]$ Required information

Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$

$[$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:

Problem $6-10($Algo$)$ Part $4$

Calculate the amount of revenue and gross profit $($loss$)$ to be recognized in each of the three years,

assuming the following costs incurred and costs to complete information.

Note: Do not round intermediate calculations and round your final answers to the nearest whole

dollar amount. Loss amounts should be indicated with a minus sign.Required information

Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$

$[$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:

Westgate recognizes revenue over time according to percentage of completion.

Problem $6-10($Algo$)$ Part $5$

Calculate the amount of revenue and gross profit $($loss$)$ to be recognized in each of the three years,

assuming the following costs incurred and costs to complete information.

Note: Do not round intermediate calculations and round your final answers to the nearest whole

dollar amount. Loss amounts should be indicated with a minus sign.