Question
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
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:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,072,000 | $ | 2,738,000 | $ | 2,849,000 | |||
| Estimated costs to complete as of year-end | 5,328,000 | 2,590,000 | 0 | ||||||
| Billings during the year | 2,160,000 | 2,650,000 | 5,190,000 | ||||||
| Cash collections during the year | 1,880,000 | 2,700,000 | 5,420,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
2021 Revenue
Gross profit
2022 Revenue
Gross profit
2023. Revenue
Gross profit
Homework Answers
Answer #1
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In 2021, the Westgate Construction Company entered into a
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Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...
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:
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Cost incurred during the year
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Estimated costs to complete as of year-end
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Billings during the year
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contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows: 2018 2019 2020 Cost incurred during the
year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs to
complete as of year-end 5,810,000 1,826,000 0 Billings during the
year 2,030,000 4,444,000 3,526,000 Cash collections during the year
1,815,000 3,900,000 4,285,000 Westgate recognizes revenue over time
according to...
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa...
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contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
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Cost incurred during the year
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[The following information applies to the questions
displayed below.]
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