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Problem 6-10(Algo) Long-term contract; revenue recognition over time [LO6-8,6-9] Skip to question [The...

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Accounting

Problem 6-10(Algo) Long-term contract; revenue recognition over time [LO6-8,6-9]
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[The following information applies to the questions displayed below.]
In 2024, 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 2026. Information related to the contract is as follows:
202420252026
Cost incurred during the year $ 2,059,000 $ 2,627,000 $ 2,655,400
Estimated costs to complete as of year-end 5,041,0002,414,0000
Billings during the year 2,190,0002,496,0005,314,000
Cash collections during the year 1,895,0002,400,0005,705,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10(Algo) Part 2
2-a. In the journal below, complete the necessary journal entries for the year 2024(credit Cash, Materials, etc. for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2025(credit Cash, Materials, etc. for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2026(credit Cash, Materials, etc. for construction costs incurred).

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