Question
[The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa
[The following information applies to the questions displayed below.]
In 2018, 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 2020. Information related to the contract is as follows:
2018 2019 2020
Cost incurred during the year
$2,016,000$2,808,000$2,613,600
Estimated costs to complete as of year-end5,184,0002,376,0000Billings during the year2,180,0002,644,0005,176,000Cash collections during the year1,890,0002,500,0005,610,000
Westgate recognizes revenue over time according to percentage of completion.
rev: 09_15_2017_QC_CS-99734
Required:
1.Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.(Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
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