Req 2A (2018)
1. Record the construction costs.
2. Record the progress billings.
3. Record the cash collections.
4. Record the gross profit (loss).
Req 2B (2019)
1. Record the construction costs.
2. Record the progress billings.
3. Record the cash collections.
4. Record the gross profit (loss).
Req 2C (2020)
1. Record the construction costs.
2. Record the progress billings.
3. Record the cash collections.
4. Record the gross profit (loss).
In 2018, 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 2020. Information related to the contract is as follows: 2018 2019 2020 $3,555,000 2,054,000 3,946,000 3,500,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,291,000 $2,259,400 5,609,000 1,900,000 1,700,000 4,154,000 4,800,000 Westgate Construction uses the completed contract method of accounting for long-term construction contracts. 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 2018 (credit "Various accounts" for construction costs incurred) 2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred) 3. Complete the information required below to prepare a 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. partial balance sheet for 2018 and 2019 2018 2019 2020 Cost incurred during the year Estimated costs to complete $2,510,000 $3,855,000 $3,210,000 as of year-end 5,710,000 3,210,000 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. 2020 2018 2019 Cost incurred during the year Estimated costs to complete as of year-end $3,855,000 $2,510,000 5,710,000 $4,065,000 4,210,000 Complete this question by entering your answers in the tabs below. Req 2A Req 1 Req 2B 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 n certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Revenue Gross profit (loss) Req 1 Req 2A Req 4 Req 1 Req 2A Req 2B Req 2C Req 3 Req 5 Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any the contract. Balance Sheet (Partial) 2018 2019 Current assets: Current liabilities: Req 2C Req 4 Req 1 Reg 5 Reg 2A Req 2B Req 2C Req 3 Req 4 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming costs incurred and costs to complete information. (Leave amounts should be indicated with a minus sign.) no cells blank - be certain to enter "0" wherever rec 2018 2019 2020 Revenue Gross profit (loss) Req 3 Req 5 Req 2A Req 3 Req 1 Req 2B Req 2C Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming costs incurred and costs to complete information. (Leave no cells blank - be certain to enter "0" wherever re amounts should be indicated with a minus sign.) 2019 2020 2018 Revenue Gross profit (loss) Req 4 Req 5
