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In 2018, 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 2018, 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 2020. Informatlon related to the contract is as follows 2818 2819 2828 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,648,980 2,388,80 $2,926,98e 6.160,800 2,888,99e 1,848,9 2,80e,988 2,668,99e 2,86e,99e 5, 368,99e Westgate recognizes revenue over time according to percentage of completion. Requlred 1. Calculate the amount of revenue and gross profit (loss) to be recognized In each of the three years. 2-a. In the Journal below, complete the necessary Journal entries for the year 2018 (credit "Varlous accounts" for construction costs Incurred). 2-b. In the Journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs Incurred). 2-c. In the journal below, complete the necessary Journal entries for the year 2020 (credit "Varlous accounts" for construction costs Incurred). 3. Complete the Information required below to prepare a partial balance sheet for 2018 and 2019 showing any ltems related to the contract 4. Calculate the amount of revenue and gross profit (loss) to be recognized In each of the three years assuming the following costs Incurred and costs to complete Information. 2818 2819 $2,648,980 $3,848,9e $3,248,9ee 2828 Cost incurred during the year Estimated costs to complete as of year-end 6,168,9 3,148,9ee 5. Calculate the amount of revenue and gross profit (loss) to be recognized In each of the three years assuming the following costs Incurred and costs to complete Information. 2818 2019 52,648,8e8 $3,848,88e $4,820,888 4.180,900 2828 Cost incurred during the year Estimated costs to complete as of year-end 6,168,908 Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B Req 2C Req 3 Req 4 Req 5 Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.) Balance Sheet (Partial 2018 2019 Current assets ccounts receivable S 240,000 nstruction in progress ess: Billings 2,080,000 (2,030,000) Current liabilities
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