Question
PLEASE ANSWER ALL THE PARTS TO THE QUESTIONS AND SHOW YOUR WORK!! THANK YOU! In 2024, the Westgate Construction Company entered into a contract to
PLEASE ANSWER ALL THE PARTS TO THE QUESTIONS AND SHOW YOUR WORK!! THANK YOU!
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 | $ 2,511,000 | $ 3,645,000 | $ 2,138,400 |
| Estimated costs to complete as of year-end | 5,589,000 | 1,944,000 | 0 |
| Billings during the year | 2,100,000 | 4,056,000 | 3,844,000 |
| Cash collections during the year | 1,900,000 | 3,700,000 | 4,400,000 |
Assume that Westgate Constructions contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
PLEASE ASWER THE FOLLOWING...
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years 2024, 2025 and 2026.
2-a. In the journal below, complete the necessary journal entries for the year 2024 for: Record construction cost, Record progress billing, Record cash collections, Record gross profit (loss). (credit Cash, Materials, etc. for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2025 for: Record construction cost, Record progress billing, Record cash collections, Record gross profit (loss). (credit Cash, Materials, etc. for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2026 for: Record construction cost, Record progress billing, Record cash collections, Record gross profit (loss). (credit Cash, Materials, etc. for construction costs incurred).
3. Complete the information to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. Balance Sheet (Partial) Current Assets and Liabilities.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years: 2024, 2025, and 2025 assuming the following costs incurred and costs to complete information:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,410,000 | $ 3,805,000 | $ 3,210,000 |
| Estimated costs to complete as of year-end | 5,610,000 | 3,110,000 | 0 |
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years: 2024, 2025, and 2026 assuming the following costs incurred and costs to complete information:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Cost incurred during the year | $ 2,410,000 | $ 3,805,000 | $ 3,915,000 |
| Estimated costs to complete as of year-end | 5,610,000 | 4,110,000 | 0 |
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Worship Audit Making Good Worship Better
Authors: Mark Earcy
1st Edition
1851742948, 978-1851742943
