Question
In 2024, 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 2024, 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 2026. Information related to the contract is as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,580,000 | $ 4,042,000 | $ 2,175,800 |
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 |
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 |
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 |
Westgate recognizes revenue over time according to percentage of completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
In 2024, 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 2026. Information related to the contract is as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,580,000 | $ 4,042,000 | $ 2,175,800 |
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 |
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 |
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 |
Westgate recognizes revenue over time according to percentage of completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
In 2024, 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 2026. Information related to the contract is as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,580,000 | $ 4,042,000 | $ 2,175,800 |
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 |
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 |
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 |
Westgate recognizes revenue over time according to percentage of completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
In 2024, 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 2026. Information related to the contract is as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,580,000 | $ 4,042,000 | $ 2,175,800 |
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 |
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 |
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 |
Westgate recognizes revenue over time according to percentage of completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
| 2024 | 2025 | 2026 | |
| Revenue | |||
| Gross Profit (Loss) |
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The Well Church Book A Practical Guide To Mission Audit
Authors: John Finney
1st Edition
0862015499, 978-0862015497
