Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered...

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Accounting

Required information
[The following information applies to the questionsdisplayed below.]

In 2018, the Westgate Construction Company entered into a contractto construct a road for Santa Clara County for $10,000,000. Theroad was completed in 2020. Information related to the contract isas follows:
2018 2019 2020
Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400
Estimated costs to complete as of year-end 5,396,000 2,204,000 0
Billings during the year 2,140,000 3,256,000 4,604,000
Cash collections during the year 1,870,000 3,200,000 4,930,000

Westgate recognizes revenue over time according to percentage ofcompletion.
Required:
1. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three years.(Do not round intermediate calculations. Loss amountsshould be indicated with a minus sign.)

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3.8 Ratings (601 Votes)

2018 2019 2020 Revenue 290000000 420000000 290000000 Gross profit 69600000 100800000 47560000 Working Working 2018 2019 2020 A Contract Price See Answer

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	2018		2019		2020
Cost incurred during the year	$	2,204,000	$	3,192,000	$	2,424,400
Estimated costs to complete as of year-end		5,396,000		2,204,000		0
Billings during the year		2,140,000		3,256,000		4,604,000
Cash collections during the year		1,870,000		3,200,000		4,930,000