Question
[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
[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 | 2,016,000 | 2,808,000 | 2,613,600 |
Estimated costs to complete as of year end | 5,184,000 | 2,376,000 | 0 |
Billings during the year | 2,180,000 | 2,644,000 | 5,176,000 |
Cash collections during the year | 1,890,000 | 2,500,000 | 5,610,000 |
Westgate recognizes revenue over time according to percentage of completion.
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.)
2021 | 2022 | 2023 | |
Revenue | 2,800,000 | 3,900,000 | 3,300,000 |
Gross Profit (Loss) | 784,000 | 1,092,000 | ? |
Steps please..
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