Required information [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: 2023 $2,074,600 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,542,000 5,658,000 2,020,000 1,810,000 2022 $3,772,000 1,886,000 4,294,000 3,800,000 3,686,000 4,390,000 Westgate recognizes revenue over time according to percentage of completion 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any itenis related to the contract. (Do not round intermediate calculations.) 2021 2022 Balance Sheet (Partial Current assets Accounts receivable Construction in progress Less Billing Costs and profit in excess of bilings Current liabilities 0 $ 5 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 (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) Costs incurred during the year Estimated costs to complete as of year-end 2021 2022 2023 $2,542.000 $3,810,000 $3,210,000 5,658,000 3,110,000 2021 2022 2023 Revenue Gross profit oss 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 (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount Loss amounts should be indicated with a minus sign.) 2021 52,542,000 5,658,000 2022 $3,810,000 4,120,000 2023 $3,930,000 costs incurred during the year Estimated costs to complete as of year-end 2021 2022 2023 Revenue Gross profit (los) Req 1 and 2 Reg 3 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. (Leave no cells blank be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) Show less Req1 Req2 Gross Profit (Loss) Recognized ("Over Time") Gross Profit (Loss) Recognized ("Upon Completion") Year 2021 2022 2023 Total project profit (loss) 0 5 0 $ Reg 3 > Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2021 and 2022 as either cost in excess of billings or billings in excess of costs. Balance Sheet (Partial) 2021 2022 Current assets Current liabilities Rea 1 and 2
