Question
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 | $ | 2,400,000 | $ | 3,600,000 | $ | 2,200,000 | |||
Estimated costs to complete as of year-end | 5,600,000 | 2,000,000 | 0 | ||||||
Billings during the year | 2,000,000 | 4,000,000 | 4,000,000 | ||||||
Cash collections during the year | 1,800,000 | 3,600,000 | 4,600,000 | ||||||
1. | Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
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