Problem 6-10 (Algo) Long-term contract; revenue recognition over time (LO6-8, 6-9) (The following information applies...
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Problem 6-10 (Algo) Long-term contract; revenue recognition over time (LO6-8, 6-9) (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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,072,000 5,328,000 2,160,000 1,880,000 2022 $2,738,000 2,590,000 2,650,000 2,700,000 2023 $2,849,000 0 5,190,000 5, 420,000 Westgate recognizes revenue over time according to percentage of completion Problem 6-10 (Algo) Part 1 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.) 2022 2023 Revenue Gross profit (loss) $ $ 2021 2,800,000 728,000
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