Question

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	$	2,490,000		$	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 percentage of completion.

3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.)

I need partial balance sheet current assets and current liabilities

pleaseeee I need the answer urgent

Answer 1

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Westgate Construction Company
Workings	Calculation of Gross Profit
Particulars	2021	2022	2023
Contract Price	10,000,000	10,000,000	10,000,000	A
Cost Incurred during the year	2,490,000	3,984,000	2,008,600	C
Cost Incurred to date	2,490,000	6,474,000	8,482,600
(Cost incurred to date of the present year less Cost incurred to date of the previous year)
Estimated cost to complete	5,810,000	1,826,000	-	D
Estimated total cost	8,300,000	8,300,000	8,482,600	E=C+B
(Cost Incurred to date+ Estimated cost to complete )
Percentage complete	30.00%	78.00%	100.00%	F=B/E
(Cost Incurred to date/Estimated total cost)
Revenue to be recognized	3,000,000	4,800,000	2,200,000	G
(Contract Price*Percentage complete)- revenue previously recognized
Year 2021: 30% completed. Revenue recognized = 30% x $ 10,000,000 = $ 3,000,000.
Year 2022: 77% completed. Revenue recognized = 78% x $ 10,000,000 – $ 3,000,000 (previously recognized) = $ 4,800,000.
Year 2023: 100% completed. Revenue recognized = 100% x $ 10,000,000 – $ 3,000,000- $ 4,780,000 (previously recognized) = $ 2,200,000.
Gross Profit/(Loss)	510,000	816,000	191,400	H=G-C
Billings during the year	2,030,000.00	4,444,000.00	3,526,000.00
Cash collections during the year	1,815,000.00	3,900,000.00	4,285,000.00
Ans to 3				Workings for Balance Sheet
				CIP (Work-in-progress)
Balance Sheet (Partial)	2021	2022		Account	Amount ($)
Current Assets:				Cash	2,490,000.00
CIP (Work-in-progress)	3,000,000.00	7,800,000.00		Gross Profit	510,000.00
	3,000,000	7,800,000		Balance at the end of 2021	3,000,000.00
Current Liabilities:				Cash	3,984,000.00
Billing on CIP	2,030,000.00	4,444,000.00		Gross Profit	816,000.00
	2,030,000.00	4,444,000.00		Balance at the end of 2022	7,800,000.00
				Billing on CIP
				Account	Amount ($)
				Accounts Receivable	2,030,000.00
				Balance at the end of 2021	2,030,000.00
				Accounts Receivable	4,444,000.00
				Balance at the end of 2022	6,474,000.00