Question
Required information Skip to question [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to
Required information
Skip to question
[The following information applies to the questions displayed below.]
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 | $ 2,059,000 | $ 2,627,000 | $ 2,655,400 |
| Estimated costs to complete as of year-end | 5,041,000 | 2,414,000 | 0 |
| Billings during the year | 2,190,000 | 2,496,000 | 5,314,000 |
| Cash collections during the year | 1,895,000 | 2,400,000 | 5,705,000 |
Westgate recognizes revenue over time according to percentage of completion.
2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit Cash, Materials, etc. for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit Cash, Materials, etc. for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2026 (credit Cash, Materials, etc. for construction costs incurred).
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Auditing A Complete Guide To Perform Internal And External Audits
Authors: Tim Power
1st Edition
1801490031, 978-1801490030
