Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2021, 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 2021, 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 2023. Information related to the contract is as follows:

2021 2022 2023

Cost incurred during the year $2,581,000 $2,347,000 $3,049,200

Estimated costs to complete 6,319,000 2,772,000 0

as of year-end

Billings during the year 2,090,000 2,838,000 5,072,000

Cash collections during the year 1,845,000 2,900,000 5,255,000

Westgate recognizes revenue over time according to percentage of completion.

, List the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).

2-b.List a journal below, using the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).

2-c.Show a journal below, Using the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

Date General Journal Debit Credit

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_2

Step: 3

blur-text-image_3

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

Computer Accounting

Authors: Donna Kay

14th Edition

007762453X, 9780077624538

More Books

Students also viewed these Accounting questions

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago