In 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa...
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Accounting
In 2018, the Westgate Construction Company entered into acontract to construct a road for Santa Clara County for$10,000,000. The road was completed in 2020. Information related tothe contract is as follows:
2018
2019
2020
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 percentageof completion.
5. Calculate the amount of revenue and gross profit (loss) tobe recognized in each of the three years assuming the followingcosts incurred and costs to complete information. (Do not roundintermediate calculations and round your final answers to thenearest whole dollar amount. Loss amounts should be indicated witha minus sign.)
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