Question

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not Increate completion. Return to question Required information [The following information applies to the questions displayed below.) Part 4 of 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 $2,655 400 Coat incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,059,000 5,041,000 2,190,000 1,895,000 2022 $2,627,000 2,414,000 2,496,000 2,400,000 5,314000 5,705,000 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.) Coste incurred during the year Estimated costs to complete as of year-end 2021 $2,059,000 5,041,000 2022 $3,895,000 3,195,000 2023 $3,295,000 Answer is complete but not entirely correct. 2023 $ 2,800,000 $ 5,200,000 $ 3,400,000 841.000 $ 327,000 3 745,000 Revenue Gross profit (loss) < Prev 6 7 of 8 !! Next > MacBook Pr

Answer 1

YEAR 2021 ($) 1,00,00,000 2022 ($) 1,00,00,000 2023 ($) 1,00,00,000 2655400 Contrcat Price Less: Estimated Cost: Cost to date Cost to complete Total Cost Gross profit 2059000 5041000 7100000 29,00,000 2627000 2414000 5041000 49,59,000 2655400 73,44,600 C = A-B 29.00% 52.11% 100.00% Percent Complete (Cost to date / Total Cost) Revenue: Total Contract Price Percentage Complete Comulatevie Revenue Revenue rec. In previus period 1,00,00,000 29.00% 29,00,000.00 AXD 1,00,00,000 52.11% 52,11,000.00 29,00,000.00 23,11,000.00 1,00,00,000 100.00% 1,00,00,000.00 29,00,000.00 23,11,000.00 47,89,000.00 Gross profit: Revenue Cost 29,00,000.00 2059000 8,41,000.00 52,11,000.00 26,27,000.00 8,41,000.00 17,43,000.00 1,00,00,000.00 2655400 17,43,000.00 56,01,600.00 THEREFORE ANSWER WILL BE AS UNDER REVENUE 2021 2022 2023