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Westgate Construction Company | ||||
Ans to 1 and 2 | 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 | 2,581,000 | 2,347,000 | 3,049,200 | C |
Cost Incurred to date | 2,581,000 | 4,928,000 | 7,977,200 | |
(Cost incurred to date of the present year less Cost incurred to date of the previous year) | ||||
Estimated cost to complete | 6,319,000 | 2,772,000 | - | D |
Estimated total cost | 8,900,000 | 7,700,000 | 7,977,200 | E=C+B |
(Cost Incurred to date+ Estimated cost to complete ) | ||||
Percentage complete | 29.00% | 64.00% | 100.00% | F=B/E |
(Cost Incurred to date/Estimated total cost) | ||||
Revenue to be recognized | 2,900,000 | 3,500,000 | 3,600,000 | G |
(Contract Price*Percentage complete)- revenue previously recognized | ||||
Year 2021: 29% completed. Revenue recognized = 29% x $ 10,000,000 = $ 2,900,000. | ||||
Year 2022: 64% completed. Revenue recognized = 64% x $ 10,000,000 – $ 2,900,000 (previously recognized) = $ 3,500,000. | ||||
Year 2023: 100% completed. Revenue recognized = 100% x $ 10,000,000 – $ 2,900,000- $ 3,500,000 (previously recognized) = $ 3,600,000. | ||||
Gross Profit/(Loss) | 319,000 | 1,153,000 | 550,800 | H=G-C |
Billings during the year | 2,090,000.00 | 2,838,000.00 | 5,072,000.00 | |
Cash collections during the year | 1,845,000.00 | 2,900,000.00 | 5,255,000.00 |
2021 | 2022 | 2023 | ||||||||
Journal Entries | Debit $ | Credit $ | Debit $ | Credit $ | Debit $ | Credit $ | ||||
Costs Incurred | CIP (Work-in-progress) | 2,581,000 | 2,347,000 | 3,049,200 | ||||||
Cash | 2,581,000 | 2,347,000 | 3,049,200 | |||||||
Billing | Accounts Receivable | 2,090,000 | 2,838,000 | 5,072,000 | ||||||
Billing on CIP | 2,090,000 | 2,838,000 | 5,072,000 | |||||||
Receiving Payments | Cash | 1,845,000 | 2,900,000 | 5,255,000 | ||||||
Accounts Receivable | 1,845,000 | 2,900,000 | 5,255,000 | |||||||
Period end adjustments for Revenue | Construction Expense | 2,581,000 | 2,347,000 | 3,049,200 | ||||||
(Gross Profit entry) | CIP (Work-in-progress) | 319,000 | 1,153,000 | 550,800 | ||||||
Construction Revenue | 2,900,000 | 3,500,000 | 3,600,000 | |||||||
Completing the Project | Billing on CIP | 10,000,000 | ||||||||
CIP (Work-in-progress) | 10,000,000 |
Return to question Required information (The following information applies to the questions displayed below! Part 2...
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 $3,849,200 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,581,000 6,319,000 2,890,000 1,845,000 2022 $2,347,000 2,772,000 2,838,000 2,900,000 5,072,000 5,255,000...
13 Return to question Part 3 of 5 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: 10 points 2023 $3,049,200 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,581,000...
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 $2,424, 400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,204,000 5,396,000 2,140,000 1,870,000 2022 $3,192,000 2,204,000 3,256,000 3,200,000 4,604,000...
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 $ 2,016,000 $ 2,808,000 $ 2,613,600 Estimated costs
to complete as of year-end 5,184,000 2,376,000 0 Billings during
the year 2,180,000 2,644,000 5,176,000 Cash collections during the...
[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 $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000...
he 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 $ 2,291,000 $ 3,555,000 $ 2,259,400 Estimated costs to complete as of year-end 5,609,000 2,054,000 0 Billings during the year 2,110,000 3,736,000 4,154,000 Cash collections during the year 1,855,000...
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 $ 2,581,000 $ 2,347,000 $ 3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to...
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 $2,550,000 $4,250,000 $ 1,870,000 Estimated costs to complete as of year-end 5,950,000 1,700,000 0 Billings during the year 2,050,000 4,750,000 3,200,000 Cash collections during the year 1,825,000 4,100,000 4,075,000 Westgate recognizes...
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: 2018 2019 2020 Cost incurred during the year $ 2,581,000 $ 2,347,000 $ 3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to...
lis the jorrnal entries for 2021,2022,2023
Saved Help I Contracts 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 $2,239,800 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,610,000...