In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa...
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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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2024 $ 2,640,000 6,160,000 2,080,000 2025 $ 2,300,000 2,660,000 2,860,000 2026 $ 2,926,000 0 5,060,000 1,840,000 2,800,000 5,360,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 1 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 Revenue $ 3,000,000 Gross profit (loss) 2026 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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2024 $ 2,640,000 6,160,000 2,080,000 2025 $ 2,300,000 2,660,000 2,860,000 2026 $ 2,926,000 0 5,060,000 1,840,000 2,800,000 5,360,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 1 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 Revenue $ 3,000,000 Gross profit (loss) 2026
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To calculate the amount of revenue and gross profit loss to be recognized in each of the three years we will use the percentage of completion method T... View the full answer
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