Return to question 7 Problem 6-11 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] 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: 5 points Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $ 1,400,000 5,600,000 1,000,000 800,000 2022 $3,150,000 2,450,000 3,550,000 2,600,000 2023 $ 2,695,000 0 5,450,000 6,600,000 Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. 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 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). Return to question 7 5 points 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 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). 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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. 2021 2022 2023 Cost incurred during the year $ 2,600,000 $3,900,000 $3,300,000 Estimated costs to complete as of year-end 5,800,000 3,300,000 0 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. Cost incurred during the year Estimated costs to complete as of year-end 2021 $ 2,600,000 5,800,000 2022 $3,900,000 4,300,000 2023 $4,200,000 0 Return to question 7 Answer is not complete. Complete this question by entering your answers in the tabs below. 5 points Req 1 Req 2A Req 2B Req 2c Reg 3 Req 4 Reg 5 Calculate the amount of revenue and gross profit (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.) 2023 Revenue 2021 $ 2,000,000 $ 0 3,719,807 X 2022 $ 4,500,000 $ 1,350,000 Gross profit (loss) 1,024,807 X
