[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 2024 $ 2,640,000 6,160,000 2,080,000 1,840,000 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 $ 2,300,000 2,660,000 2,860,000 2,800,000 2026 2026 $ 2,926,000 0 5,060,000 5,360,000
[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 2024 $ 2,640,000 6,160,000 2,080,000 1,840,000 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 $ 2,300,000 2,660,000 2,860,000 2,800,000 2026 2026 $ 2,926,000 0 5,060,000 5,360,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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Munabhai
![[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
2024
$ 2,640,000
6,160,000
2,080,000
1,840,000
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
$ 2,300,000
2,660,000
2,860,000
2,800,000
2026
2026
$ 2,926,000
0
5,060,000
5,360,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09438f51-3c29-4139-bb56-91e8c707cc80%2Fff2f85b9-84b2-43e8-8d8c-44e3f92088e1%2Fmonmcns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
2024
$ 2,640,000
6,160,000
2,080,000
1,840,000
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
$ 2,300,000
2,660,000
2,860,000
2,800,000
2026
2026
$ 2,926,000
0
5,060,000
5,360,000
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