Question
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 as of year-end | 6,319,000 | 2,772,000 | 0 | ||||||
| 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.
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.)
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Financial Accounting For Undergraduates
Authors: Wallace
4th Edition
1618533088, 9781618533081
