Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] 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 Westgate recognizes revenue over time according to percentage of completion. 2022 2021 $2,044,000 $2,628,000 2,628,000 5,256,000 2,170,000 2,502,000 1,885,000 2,600,000 Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Problem 6-10 (Algo) Part 2 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred). Req 2C 2023 $2,890,800 0 5,328,0 5,515,000
Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] 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 Westgate recognizes revenue over time according to percentage of completion. 2022 2021 $2,044,000 $2,628,000 2,628,000 5,256,000 2,170,000 2,502,000 1,885,000 2,600,000 Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Problem 6-10 (Algo) Part 2 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred). Req 2C 2023 $2,890,800 0 5,328,0 5,515,000
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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Question
![Required information
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]
[The following information applies to the questions displayed below.]
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
Westgate recognizes revenue over time according to percentage of completion.
2021
$2,044,000
5,256,000
2022
$2,628,000
2,628,000
2,170,000 2,502,000
1,885,000 2,600,000
Problem 6-10 (Algo) Part 2
2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs
incurred).
Complete this question by entering your answers in the tabs below.
Req 2A
2023
$2,890,800
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs
incurred).
Req 2B
0
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
Req 2C
5,328,00
5,515,000
In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F396614bb-c3a0-4f48-8975-b170d2cb30dc%2F5adc3e90-e463-4275-bf13-ed917ab91d0c%2Fqd04q2k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]
[The following information applies to the questions displayed below.]
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
Westgate recognizes revenue over time according to percentage of completion.
2021
$2,044,000
5,256,000
2022
$2,628,000
2,628,000
2,170,000 2,502,000
1,885,000 2,600,000
Problem 6-10 (Algo) Part 2
2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs
incurred).
Complete this question by entering your answers in the tabs below.
Req 2A
2023
$2,890,800
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs
incurred).
Req 2B
0
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
Req 2C
5,328,00
5,515,000
In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transcribed Image Text:2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
Complete this question by entering your answers in the tabs below.
Req 2A
In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Req 2B
<
Journal entry worksheet
1
2
Date
2021
Req 2C
3
Record construction costs.
Note: Enter debits before credits.
Record entry
4
General Journal
Clear entry
Debit
Credit
View general journal
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