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: 2024 $ 2,204,000 5,396,000 2,140,000 1,870,000 Show Transcribed Text 2025 $ 3,192,000 2,204,000 3,256,000 3,200,000 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. 2026 $ 2,424,400 4,604,000 4,930,000
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: 2024 $ 2,204,000 5,396,000 2,140,000 1,870,000 Show Transcribed Text 2025 $ 3,192,000 2,204,000 3,256,000 3,200,000 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. 2026 $ 2,424,400 4,604,000 4,930,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
Related questions
Question
![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.
Show Transcribed Text
Revenue
Gross profit (loss)
3
2024
2024
2025
$ 2,204,000 $ 3,192,000
5,396,000
2,140,000
1,870,000
2025
2,204,000
3,256,000
3,200,000
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.
2026
2026
$ 2,424,400
0
4,604,000
4,930,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97d91932-2e93-4e00-9935-a5fffce216ec%2F486db19a-6fe2-417b-b5a2-fa3e63186c25%2Fscunx3e_processed.png&w=3840&q=75)
Transcribed Image Text: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.
Show Transcribed Text
Revenue
Gross profit (loss)
3
2024
2024
2025
$ 2,204,000 $ 3,192,000
5,396,000
2,140,000
1,870,000
2025
2,204,000
3,256,000
3,200,000
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.
2026
2026
$ 2,424,400
0
4,604,000
4,930,000
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