Question
Required information Skip to question [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to
Required information
Skip to question
[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:
2021 | 2022 | 2023 | |||||||
Cost incurred during the year | $ | 2,100,000 | $ | 3,150,000 | $ | 2,475,000 | |||
Estimated costs to complete as of year-end | 5,400,000 | 2,250,000 | 0 | ||||||
Billings during the year | 2,150,000 | 3,100,000 | 4,750,000 | ||||||
Cash collections during the year | 1,875,000 | 3,100,000 | 5,025,000 | ||||||
Westgate recognizes revenue over time according to percentage of completion.
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).
Complete this question by entering your answers in the tabs below.
- Req 2A
- Req 2B
- Req 2C
In the journal below, complete the necessary journal entries for the year 2021 (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.)
Journal entry worksheet
- Record construction costs.
Note: Enter debits before credits.
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