P 5-11 Complete the requirements of P 5-10 assuming that Westgate Constructions contract with Santa Clara County. please help with 5-10 and 5-11.
CHAPTERS Revenue Recognition P 5-10 Long-term contract revenue recognition over time LO5-8, LOS 9 In 2015, the Westgate Construct Company entered into a contract contact road for Santa Clara County for $10,000,000. The road was completed in 2000 Information related to the contract is as follows 2020 $2,200,000 Cost incurred during the year Estimated costs to complete as of year and Billings during the year Cash collections during the year 2018 $2.400.000 5,600.000 2,000,000 1.800.000 2019 $3,600.000 2,000,000 4.000.000 3.600.000 4,000,000 4,600.000 Westgate recognizes revenue over time according to percentage of completion 1. Calculate the amount of revenue and gross profit to be recognized in each of the three years. 2. Prepare all necessary journal entries for each of the years credit various accounts for construction costs incurred 3. Prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. Indicate whether any of the amounts shown are contract assets or contract liabilities 4. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and conto complete information 2010 2020 $3.200.000 Costs incurred during the year Estimated costs to complete as of year-end 2019 $3,800,000 3.100.000 $2,400,000 5.600.000 5. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the fol- lowing costs incurred and costs to complete information: 2018 $2,400,000 5.600.000 2019 $3,800,000 4,100,000 2020 $3,900,000 Costs incurred during the year Estimated costs to complete as of year-end * This is a variation of P 5-10 modified to focus on revenue recognition upon project completion.] Required: Complete the requirements of P 5-10 assuming that Westgate Construction's contract with Santa Clara Count does not qualify for revenue recognition over time. P5-11 Long-term contract; revenue recognition upon completion LO5-9 P5-12 Long-term contract; revenue recognized over time; loss projected on entire project LO5-9 Curtiss Construction Company, Inc., entered into a fixed price contract with Axelrod Associates on July 1.2 to construct a four-story office building. At that time, Curtiss estimated that it would take between two and d years to complete the project. The total contract price for construction of the building is $4,000,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The building was completed December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated co complete the contract, and accumulated billings to Axelrod under the contract were as follows: At 12-31-2018 10% $ 350,000 3,150,000 720,000 Percentage of completion Costs incurred to date Estimated costs to complete Billings to Axelrod, to date At 12-31-2019 60% $2,500,000 1,700,000 2,170,000 At 12-31-2020 100% $4,250,000 3,600,000 Required: 1. For each of the three years, prepare a schedule to compute total gross profit or loss to be recognized a result of this contract. .w ncenne over time according to percentage of completion, compute gros
