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In 2016, 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
In 2016, 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 2018. Information related to the contract is as follows: |
2016 | 2017 | 2018 | |||||||
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 | 4,200,000 | 3,970,000 | ||||||
Westgate recognizes revenue over time according to percentage of completion. |
For 2a,b,c
record construction cost
record progress billing
record cash collections
record gross profit
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