part three
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: 2021 2022 2023 Cost incurred during the year $ 1, 679,800 $ 3, 285,080 Estimated costs to complete as of year-end 2, 336, 030 $ 2, 569, 608 5, 621, 080 Billings during the year 1,300,090 3, 664,090 5, 036,800 cash collections during the year 1, 100,080 2,900,000 6, 060,080 Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the Journal below, complete the necessary Journal entries for the year 2021 (credit "Various accounts" for construction costs Incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs Incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs Incurred). 3. Complete the Information required below to prepare a partial balance sheet for 2021 and 2022 showing any Items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs Incurred and costs to complete Information. 2021 2022 2023 Cost incurred during the year Estimated costs to complete as of year-end $2,570,080 $3, 885, 080 $3, 270,080 5,770,800 3,270,080 5. Calculate the amount of revenue and gross profit (loss) to be recognized In each of the three years assuming the following costs Incurred and costs to complete Information. 2021 2022 2023 Cost incurred during the year $2,570,080 $3, 885,090 $4, 155,090 Estimated costs to complete as of year-end 5,770,080 4,270,080 * Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) 2021 2027 202x Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Reg 2C Req 3 Req 4 Reg 5 In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 2023 Construction in progress 2,569,600 Various accounts 2,569,600 2 2023 Accounts receivable 5,036,000 Billings on construction contract 5,036,000 3 2023 Cash 6,000,000 Accounts receivable 6,000,000 4 2023 Cost of construction 630,400 (X Construction in progress 121,500 x Revenue from long-term contracts 751,900 Req 2B Reg 3 >
