Wk 4 - Apply: Revenue Recognition and Accounting for Leases (due Day 7 6 Saved 7 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 $ 2,613,600 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $ 1,584,000 5,616,000 1,200,000 1,000,000 2022 $3,240,000 2,376,000 3,624,000 2,800,000 9.09 points 5, 176,000 6,200,000 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. 2021 2022 2023 Cost incurred during the year $2,580,000 $3,890,000 $3,280,000 Estimated costs to complete as of year-end 5,780,000 3,280,000 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 $2,580,000 5,780,000 2022 $3,890,000 4,280,000 2023 $4,170,000 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 2C Req3 Reg 4 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Leave no cells blank - be Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req 2c Req3 Reg 4 Req 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 2023 Revenue Gross profit (loss) Req 1 Reg 2A Reg 2B Req 2c Req3 Req 4 Req 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 Journal entry worksheet Reg 1 Reg 2A Reg 2B Reg 2C Reg 3 Reg 4 Reg 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 Journal entry worksheet 1 2 3 4 > Record the construction costs. Note: Enter debits before credits. Date General Journal Debit Credit 2022 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req 2c Req3 Reg 4 Reg 5 In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs in (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > Record the construction costs. Note: Enter debits before credits. Date General Journal 2023 Debit Credit Record entry Clear entry View general journal $3,280,000 Cost incurred during the year Estimated costs to complete as of year-end $2,580,000 5,780,000 $3,890,000 3,280,000 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 $2,580,000 5,780,000 2022 $3,890,000 4,280,000 2023 $4,170,000 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 20 Reg 3 Reg 4 Reg 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 Balance Sheet (Partial) Current assets $ 0 $ Current liabilities: Cost incurred during the year Estimated costs to complete as of year-end 2021 $2,580,000 5,780,000 2022 $3,890,000 4,280,000 2023 $4,170,000 0 Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Reg 20 Reg 3 Reg 4 Reg 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 Revenue Gross profit (loss) Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Reg 2c Req3 Reg 4 Reg 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 Revenue Gross profit (loss)
