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 2024 $ 2,490,800 5,810,000 2,030,000 1,815,000 2025 $ 3,984,000 1,826,000 4,444,000 3,900,000 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. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2026 $ 2,008,600 3,526,000 4,285,000
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 2024 $ 2,490,800 5,810,000 2,030,000 1,815,000 2025 $ 3,984,000 1,826,000 4,444,000 3,900,000 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. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2026 $ 2,008,600 3,526,000 4,285,000
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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Dd2.
![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.
Revenue
Gross profit (loss)
2024
2824
$ 2,490,000
5,810,000
2,030,000
1,815,000
Required:
1. 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.
2025
2025
$ 3,984,000
1,826,000
4,444,000
3,900,008
2026
2026
$ 2,008,600
0
3,526,000
4,285,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e73faeb-754b-4598-beaf-65c4605dc4b7%2Fabe7b82b-b60d-46e3-96ef-fac57e90de90%2F2nu0xrq_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Revenue
Gross profit (loss)
2024
2824
$ 2,490,000
5,810,000
2,030,000
1,815,000
Required:
1. 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.
2025
2025
$ 3,984,000
1,826,000
4,444,000
3,900,008
2026
2026
$ 2,008,600
0
3,526,000
4,285,000
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