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:
2021 | 2022 | 2023 | |||||||
Cost incurred during the year | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
4. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete information.
(Do not round intermediate calculations and round your
final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.)
2021 | 2022 | 2023 | |||||||
Costs incurred during the year | $ | 2,604,000 | $ | 3,820,000 | $ | 3,220,000 | |||
Estimated costs to complete as of year-end | 5,796,000 | 3,120,000 | 0 | ||||||
Westgate Construction Company | |
Year | 2021 |
Contract Price | $ 1,00,00,000.00 |
Cost to date | $ 26,04,000.00 |
Estimated cost to complete | $ 57,96,000.00 |
Total Estimated cost | $ 84,00,000.00 |
Percentage to complete the Project=Cost to date/Total estimated cost=($2604000/8400000) | 31% |
Revenue Recognized=Contract Price*percentage to complete=($10000000*31%) | $ 31,00,000.00 |
Profit Recognized=Revenue Recognized-Cost to date=($3100000-$2604000)= | $ 4,96,000.00 |
Year | 2022 |
Contract Price | $ 1,00,00,000.00 |
Cost to date($2604000+$3820000) | $ 64,24,000.00 |
Estimated cost to complete | $ 31,20,000.00 |
Total Estimated cost | $ 95,44,000.00 |
Percentage to complete the Project=Cost to date/Total estimated cost=($2604000/8400000) | 67% |
Revenue Recognized=(Contract Price*percentage to complete-Revenue recognized in the previous period)=($10000000*67%-$3100000) | $ 36,30,930.43 |
Profit Recognized=($10000000-$9544000-$496000) | $ -40,000.00 |
Year | 2023 |
Contract Price | $ 1,00,00,000.00 |
Cost to date($2604000+$3820000+$3220000) | $ 96,44,000.00 |
Estimated cost to complete | $ - |
Total Estimated cost | $ 96,44,000.00 |
Percentage to complete the Project=Cost to date/Total estimated cost=($2604000/8400000) | 100% |
Revenue Recognized=(Contract Price*percentage to complete-Revenue recognized in the previous period)=($10000000*100%-$3100000-3630930.57) | $ 32,69,070 |
Profit Recognized=($10000000-$9644000-$496000-(-40000)) | $ -1,00,000.00 |
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:
2021
2022
2023
Cost incurred during the year
$
2,604,000
$
4,032,000
$
1,940,400
Estimated costs to complete as of year-end
5,796,000
1,764,000
0
Billings during the year
2,040,000
4,596,000
3,364,000
Cash collections during the...
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:
2021
2022
2023
Cost incurred during the year
$
2,604,000
$
4,032,000
$
1,940,400
Estimated costs to complete as of year-end
5,796,000
1,764,000
0
Billings during the year
2,040,000
4,596,000
3,364,000
Cash collections during the...
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:
2021
2022
2023
Cost incurred during the year
$
2,604,000
$
4,032,000
$
1,940,400
Estimated costs to complete as of year-end
5,796,000
1,764,000
0
Billings during the year
2,040,000
4,596,000
3,364,000
Cash collections during the...
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: 2023 $1,940,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,604,000 5,796,000 2,040,000 1, 820, 000 2022 $4,032,000 1,764,000 4,596,000 4,000,000...
Required information (The following information applies to the questions displayed below.] In 2018, 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 2020. Information related to the contract is as follows: 2020 $1,940,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2018 $ 2,604,000 5,796,000 2,040,000 1,820,000 2019 $4,032,000 1,764,000 4,596,000 4,000,000 3,364,000...
olued HW 1 Saved Help (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: of 5 cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,604,000 5,796,000 2,040,000 1,820,000 2023 $1,940,400 2022 $4,032,000...
urgent plz
olued HW 1 Saved Help (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: of 5 cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,604,000 5,796,000 2,040,000 1,820,000 2023 $1,940,400...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered intoo a 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 Estimated costs to complete as of year-end Billings during the year Cash collections during the year $4,032,000 1,764,000 4,596,000 4,000,000 $2,604,000 5,796,000 2,040,000 1,820,000 $1,940,400 3,364,000 4,180,000...
! Required information [The following information applies to the questions displayed below.] In 2018, 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 2020. Information related to the contract is as follows: 2020 $1,940,400 2018 $2,604,000 5,796,000 2,040,000 1,820,000 2019 $4,032,000 1,764,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 4,596,000 4,000,000 3,364,000...
Required information (The following information applies to the questions displayed below.) In 2018, 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 2020. Information related to the contract is as follows: 2020 $1,940,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2018 $2,604,000 5,796,000 2,040,000 1,820,000 2019 $4,032,000 1,764,000 4,596,000 4,000,000 3,364,000 4,180,000...