Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 (keep your decimals during the calcuation): 2013 2014 2015 Cost incurred during the year $2,500,000 $3,800,000 $2,000,000 Estimated costs to complete as of year-end 5,700,000 2,200,000 Billings during the year 2,100,000 4,200,000 3,700,000 Cash collections during the year 1,900,000 3,800,000 4,300,000 Requirement 3 (8 points): Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs to complete information under the method of percentage of completion and the mothod of completed contract. The contract price are from the above: Calculate the amount of gross profit to be recognized in each of the three years assuming the following costs to complete information under the method of percentage of completion and the mothod of completed contract. The contract price are from the above: 2013 2014 2015 Cost incurred during the year $2,300,000 $3,400,000 $3,700,000 Estimated costs to complete as of year-end 6,500,000 4,000,000 profit Gross recognized: Percentage of completion Completed contract 2013 1) 2) 2014 3) 4) 2015 6) 5) 7 Total gross profit 8) profit Gross recognized: Percentage of completion Completed contract 2013 1) 2) 2014 3) 4) 2015 5) 6) Total gross profit 7) 8) Blank # 1 Blank # 2 Blank # 3 N 5: Blank #4 Blank # 5 A e 6: Blank # 6 Blank #7 A Blank #8 A/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Conducting Information Systems Auditing

Authors: Arif Ahmed, Veena Hingarh

1st Edition

1118343743, 978-1118343746

More Books

Students also viewed these Accounting questions

Question

What are the role of supervisors ?

Answered: 1 week ago