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 5,658,000 2018 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2017 $2.542.000 $3,772,000 $2,074,600 1,886,000 2020,000 4,294,000 3,686,000 1,810,000 3,800,000 4,390,000 0 Westgate recognizes revenue over time according to percentage of completion. Required: 1. calculate the amount of 1. Calculate the amount of revenue and gross profit to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.) 2016 2017 2018 Revenue Gross profit(loss) 810 000 2-a. In the journal below, complete the necessary journal entries for the year 2016 (credit Various accounts" for construction costs incurred), (If no entry is required for a transactionlevent, select No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 2.542,000 2016 Construction in progress Various accounts 2,542,000 2016 Accounts receivable 2020,000 Billings on construction contract 2,020,000 32016 Cash 1,810 000 Accounts receivable 1,810,000 4 2016 Construction in progress 3,772.00 Various accounts 3,.7 3.772 000 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 5,658,000 2018 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2017 $2.542.000 $3,772,000 $2,074,600 1,886,000 2020,000 4,294,000 3,686,000 1,810,000 3,800,000 4,390,000 0 Westgate recognizes revenue over time according to percentage of completion. Required: 1. calculate the amount of 1. Calculate the amount of revenue and gross profit to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.) 2016 2017 2018 Revenue Gross profit(loss) 810 000 2-a. In the journal below, complete the necessary journal entries for the year 2016 (credit Various accounts" for construction costs incurred), (If no entry is required for a transactionlevent, select No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 2.542,000 2016 Construction in progress Various accounts 2,542,000 2016 Accounts receivable 2020,000 Billings on construction contract 2,020,000 32016 Cash 1,810 000 Accounts receivable 1,810,000 4 2016 Construction in progress 3,772.00 Various accounts 3,.7 3.772 000
