Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs curred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest hole dollar amount. Loss amounts should be indicated with a minus sign.) Costs incurred during the year Estimated costs to complete as of year-end Revenue 2021 2022 2021 2022 2023 $2,184,000 $3,860,000 $4,080,000 5,616,000 4,220,000 2023 0
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs curred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest hole dollar amount. Loss amounts should be indicated with a minus sign.) Costs incurred during the year Estimated costs to complete as of year-end Revenue 2021 2022 2021 2022 2023 $2,184,000 $3,860,000 $4,080,000 5,616,000 4,220,000 2023 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19RE
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Transcribed Image Text: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:
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
Costs incurred during the year
Estimated costs to complete as of year-end
Westgate recognizes revenue over time according to percentage of completion.
Revenue
Gross profit (loss)
2022
2021
$2,184,000
$3,510,000
5,616,000 2,106,000
2021
2,120,000
1,860,000
2022
. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs
curred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest
hole dollar amount. Loss amounts should be indicated with a minus sign.)
2021
$2,184,000
5,616,000
2023
2023
$2,316,600
3,574,000 4,306,000
4,740,000
3,400,000
2022
$3,860,000
4, 220,000
0
2023
$4,080,000
0
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