Required information [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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year. Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) $ $ 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following incurred and costs to complete information. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss ame should be indicated with a minus sign. 2024 2,800,000 616,000 2025 2024 2025 $ 2,184,000 $ 3,510,000 5,616,000 2,106,000 2,120,000 3,574,000 1,860,000 3,400,000 2026 2024 $ 2,184,000 5,616,000 2026 $ 2,316,600 2025 $ 3,860,000 3,160,000 4,306,000 4,740,000 0 2026 $ 3,260,000 0
Required information [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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year. Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) $ $ 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following incurred and costs to complete information. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss ame should be indicated with a minus sign. 2024 2,800,000 616,000 2025 2024 2025 $ 2,184,000 $ 3,510,000 5,616,000 2,106,000 2,120,000 3,574,000 1,860,000 3,400,000 2026 2024 $ 2,184,000 5,616,000 2026 $ 2,316,600 2025 $ 3,860,000 3,160,000 4,306,000 4,740,000 0 2026 $ 3,260,000 0
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
Related questions
Question
Haresh
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you