Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2016, the westgate construction company entered

In 2016, the Westgate Construction Company entered into a contract to construct a road for...

60.1K

Verified Solution

Question

Accounting

In 2016, 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 2018. Information related to the contract is as follows:
2016 2017 2018
Cost incurred during the year $ 2,072,000 $ 2,738,000 $ 2,849,000
Estimated costs to complete as of year-end 5,328,000 2,590,000 0
Billings during the year 2,160,000 2,650,000 5,190,000
Cash collections during the year 1,880,000 2,700,000 5,420,000

Westgate recognizes revenue over time according to percentage of completion.

image

4. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) Cost incurred during the year Estimated costs to complete as of year-end 2016 2017 2018 $2,072,000 $3,880,000 $3,280,000 5.328,000 3,180,000 0 X Answer is not complete. 2016 2017 2018 Revenue 2,800,000 s 728,000 3,717,740 162,260) 3.482,260 Gross profit (loss)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students