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. Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings CIP in excess of billings Current liabilities: Billings in excess of CIP 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. Note: Do not round intermediate calculations. 2024 $3,000,000 2,000,000 $ 200,000 $ 1,000,000 2024 $ 2,400,000 5,600,000 2,000,000 1,800,000 0 0 2025 $7,500,000 2,000,000 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 $ 600,000 $ 5,500,000 0 2026 $ 2,200,000 0 0 4,000,000 4,600,000
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: 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. Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings CIP in excess of billings Current liabilities: Billings in excess of CIP 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. Note: Do not round intermediate calculations. 2024 $3,000,000 2,000,000 $ 200,000 $ 1,000,000 2024 $ 2,400,000 5,600,000 2,000,000 1,800,000 0 0 2025 $7,500,000 2,000,000 2025 $ 3,600,000 2,000,000 4,000,000 3,600,000 $ 600,000 $ 5,500,000 0 2026 $ 2,200,000 0 0 4,000,000 4,600,000
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 10C
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