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 | $ 2,640,000 | $ 2,300,000 | $ 2,926,000 |
| Estimated costs to complete as of year-end | 6,160,000 | 2,660,000 | 0 |
| Billings during the year | 2,080,000 | 2,860,000 | 5,060,000 |
| Cash collections during the year | 1,840,000 | 2,800,000 | 5,360,000 |
Westgate recognizes revenue over time according to percentage of completion.
3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract.
Note: Do not round intermediate calculations.
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Inside Accounting The Sociology Of Financial Reporting And Auditing
Authors: David Leung
1st Edition
1138251178, 9781138251175
