In 2021, 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 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to percentage of completion. 2.b In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). Record progress billings. Date General Journal Debit Credit 2021 _________________________ ___________ __________ _________________________ ___________ __________ _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ____________ ___________ _________________________ ____________ ___________

In 2021, 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 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to percentage of completion. 2.b In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). Record progress billings. Date General Journal Debit Credit 2021 ___________________ _ _____________ _ _____________ _ _ _____________ _ _ _____________ _ ___________ _

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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2021 2022 2023

Cost incurred during the year $2,581,000 $2,347,000 $3,049,200

Estimated costs to complete as of year-end 6,319,000 2,772,000 0

Billings during the year 2,090,000 2,838,000 5,072,000

Cash collections during the year 1,845,000 2,900,000 5,255,000

Westgate recognizes revenue over time according to percentage of completion.

2.b In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).

Record progress billings.

Date General Journal Debit Credit

2021 _________________________ ___________ __________

_________________________ ___________ __________

_________________________ ___________ ___________

_________________________ ____________ ___________

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