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.
rev: 09_15_2017_QC_CS-99734
5. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three years assumingthe following costs incurred and costs to complete information.(Do not round intermediate calculations and round yourfinal answers to the nearest whole dollar amount. Loss amountsshould be indicated with a minus sign.)
| 2018 | 2019 | 2020 |
| Cost incurred during the year | $ | 2,204,000 | | $ | 3,870,000 | | $ | 4,110,000 | |
| Estimated costs to complete as of year-end | | 5,396,000 | | | 4,240,000 | | | 0 | |
|
