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
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