Required Information [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: 2022 $2,400,000 $3,600,000 $2, 200,000 2,000,000 4,000,000 3,600,000 2021 2023 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 5,600,000 2,000,000 1,800,000 4,000,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs ncurred 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 2021 $2,400,000 5,600,000 2022 $3,800,000 4,100,000 2023 $3,900,000 2021 2022 2023 3,980,600 Revenue Gross profit (loss) 3,000,000 $ 600,000 3,019.400S
Required Information [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: 2022 $2,400,000 $3,600,000 $2, 200,000 2,000,000 4,000,000 3,600,000 2021 2023 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 5,600,000 2,000,000 1,800,000 4,000,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs ncurred 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 2021 $2,400,000 5,600,000 2022 $3,800,000 4,100,000 2023 $3,900,000 2021 2022 2023 3,980,600 Revenue Gross profit (loss) 3,000,000 $ 600,000 3,019.400S
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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