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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

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[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.

Date General Journal Debit Credit
2021

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