Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 6-10 (algo) long-term contract; revenue re

Problem 6-10 (Algo) Long-term contract; revenue recognition over time (LO6-8, 6-9) (The following information applies...

50.1K

Verified Solution

Question

Accounting

image
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

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