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only 2021 is correct, please help! Check my ! Required Information Problem 6-10 (Algo) Long-term contract; revenue recognition over time (LO6-8, 6- 9) [The following
only 2021 is correct, please help!
Check my ! Required Information Problem 6-10 (Algo) Long-term contract; revenue recognition over time (LO6-8, 6- 9) [The following information applies to the questions displayed below] 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: 2023 $1,980,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,523,000 6,177,000 2,070,000 1,835,000 2022 $3,177,000 1,800,000 3,630,000 3,400,000 4,300,000 4,765,000 5 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assur the following costs incurred and costs to complete information. (Do not round Intermediate calculations ar round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) Costs incurred during the year Estimated costs to complete as of year-end 2021 $2,523,000 6,177,000 2022 $3,835,000 4,170,000 2023 $4,005,800 @ 2021 2022 2023 $ 2,900,000 S Revenue 10,000,000 7,600,000 $ 1,523,000 $ $ 377,000 $ Gross profit (loss) 420.000Step by Step Solution
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