Accouting Question

Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [L06-8, 6-9] [The following information applies to the questions displayed below.] 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 yearend Billings during the year Cash collections during the year 2024 5,616, ooo 2, 120,000 1, 860,000 2025 2026 0 4, 740,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 1 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. Revenue Gross profit (loss) 2024 616,000 2025 990,000 2026 4 , 983