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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:
2024
2025
2026
Cost incurred during the year
$ 2,400,000
$ 3,600,000
$ 2,200,000
Estimated costs to complete as of year-end
5,600,000
2,000,000
0
Billings during the year
2,000,000
4,000,000
4,000,000
Cash collections during the year
1,800,000
3,600,000
4,600,000
Westgate recognizes revenue over time according to percentage of completion.
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).
In the journal below, complete the necessary journal entries for the year 2025 (credit Cash, Materials, etc. for construction costs incurred). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
o
Date
General Journal
Debit
Credit
1
2025
Construction in progress
3,600,000
Cash, materials, etc.
3,600,000
Accounts receivable
4,000,000
Billings on construction contract
4,000,000
Cash
3,600,000
Accounts receivable
3,600,000
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