undefined
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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $ 3,096,000 5,504,000 2,600,000 2,400,000 2022 $ 3,870,000 1,634,000 4,366,000 4,200,000 2023 $ 1,797, 400 0 3,034,000 3,400,000 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). 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. 2022 2023 Cost incurred during the year $2,460,000 $3,830,000 $3,260,000 Estimated costs to complete as of year-end 5,660,000 3,160,000 2021 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 $ 2,460,000 5,660,000 2022 $3,830,000 4,160,000 2023 $3,990,000 0 Complete this question by entering your answers in the tabs below. 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.) 2021 2022 $ 0 $ Revenue Gross profit (loss) 0 $ 0 $ 2023 10,000,000 1,236,600 $ 0 $ Reg 1 Req 2A Req 2B Req 2c Req 3 Reg 4 Reg 5 In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 2021 3,096,000 Construction in progress Various accounts 3,096,000 2 2021 Accounts receivable 2,600,000 Billings on construction contract 2,600,000 3 2021 Cash 2,400,000 Accounts receivable 2,400,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2c Req 3 Req 4 Req 5 In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 2022 3,870,000 Construction in progress Various accounts 3,870,000 2 2022 Accounts receivable 4,366,000 Billings on construction contract 4,366,000 2022 Cash 4,200,000 Accounts receivable 4,200,000 4 2022 No Transaction Recorded Req 1 Req 2A Req 2B Req 2c Reg 3 Req 4 Req 5 In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet X No Date General Journal Debit Credit i 1 2023 Construction in progress 1,797,000 Various accounts 1,797,000 2 2023 Accounts receivable 3,034,000 Billings on construction contract 3,034,000 3 2023 Cash 3,400,000 Accounts receivable 3,400,000 4 2023 Construction in progress 1,236,600 8,763,400 Cost of construction Revenue from long-term contracts 10,000,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2c Req 3 Req 4 Req 5 Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. 2021 2022 $ 200,000 $ 366,000 $ $ Balance Sheet (Partial) Current assets: Accounts receivable Construction in progress Less: Billings Costs in excess of billings Current liabilities: Accounts payable 3,096,000 (2,600,000) 8,508,000 (6,966,000) $ 496,000 $ 1,542,000 $ 0 $ 0 Reg 2c Reg4 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2c Reg 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 $ 0 $ 0 $ Revenue Gross profit (loss) 10,000,000 450,000 $ 0 $ 0 $ Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 3 Req 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 $ 0 $ 0 $ Revenue Gross profit (loss) 10,000,000 (280,000) $ 0 $ 0 $
