Hello,

I am having issues with calculating the construction in progress for 2014 and the costs and profits in excess of billings. Can you help me with the steps/formulas?

In 2013, 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 2015. Information related to the contract is as follows: $ 10,000,000 2013 Cost incurred during the year 2,291,000 2014 3,555,000 Estimated costs to complete as of year-end Billings during the year Cash collections during the year 5,609,000 1,900,000 1,710,000 2,054,000 3,946,000 3,500,000 Cost incurred during the year 2,291,000 5,846,000 Estimated costs to complete as of year-end Estimated total cost % of completion Revenue to be recognized Gross profit 5,609,000 7,900,000 0.29 2,900,000 609,000 2,054,000 7,900,000 0.74 4,500,000 945,000 Year 2013 2013 2013 2013 General Journal Construction in progress Various accounts Accounts receivable Billings on construction contract Cash Accounts receivable Construction in progress Cost of construction Revenue from long-term contracts Debit 2,291,000 1,900,000 1,710,000 609,000 2,291,000 8,801,000 Year 2014 General Journal Construction in progress Debit 3,555,000 2014 2014 2014 Various accounts Accounts receivable Billings on construction contract Cash net allowance Construction in progress Cost of construction Revenue from long-term contracts 3,946,000 3,500,000 945,000 3,555,000 15,501,000 Year 2015 2015 2015 2015 General Journal Construction in progress Various accounts Accounts receivable Billings on construction contract Cash Accounts receivable Construction in progress Cost of construction Revenue from long-term contracts Debit 2,259,400 4,154,000 4,790,000 340,600 2,259,400 13,803,400 Balance Sheet Accounts receivable Construction in progress Less: Billings Costs and profit in ecess of billings 2013 190,000 2,900,000 (1,900,000) 1,000,000 road for Santa Clara County contract is as follows: 2015 2,259,400 4,154,000 4,790,000 8,105,400 8,105,400 1.00 2,600,000 340,600 Credit 2,291,000 1,900,000 1,710,000 2,900,000 8,801,000 Credit 3,555,000 3,946,000 3,500,000 4,500,000 15,501,000 Credit 2,259,400 4,154,000 4,790,000 2,600,000 13,803,400 2014 636,000 6,846,000 5,846,000 Wrong 12,692,000 Wrong