Required: 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. Cost incurred during the year Estimated costs to complete as of year-end Cost incurred during the year Estimated costs to complete as of year-end Req 1 Req 2A 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. Req 2B 2024 $ 2,500,000 5,700,000 Req 2C 2024 $ 2,500,000 5,700,000 2025 $ 3,850,000 3,200,000 Req 3 2025 $ 3,850,000 4,200,000 2026 $ 3,300,000 Req 4 0 2026 $ 4,050,000 Req 5 0

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 6-11 (Algo) Long-term contract; revenue recognition upon completion [LO6-9]
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:
Cost incurred during the year
Estimated costs to complete as of year-end
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the
contract.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs
incurred and costs to complete information.
Cost incurred during the year
Estimated costs to complete as of year-end
Req 1
Balance Sheet (Partial)
Current assets:
Current liabilities:
Req 1
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs
incurred and costs to complete information.
Req 2A
Revenue
Gross profit (loss)
Req 1
Req 2A
Revenue
Gross profit (loss)
Req 2B
2024
Req 2A
Req 2B
2024
Req 2C
2025
Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items
related to the contract.
Req 2B
2024
Req 2C
2025
2024
$ 2,500,000
5,700,000
2024
$ 3,600,000
5,400,000
3,000,000
2,800,000
2024
$ 2,500,000
5,700,000
$
Req 2C
$
2026
Req 3
0
2025
$ 4,050,000
1,350,000
0
2026
Req 3
4,650,000
4,600,000
Req 3
2025
2026
$ 3,850,000 $ 3,300,000
3,200,000
Req 4
2026
$ 1,485,000
2025
2026
$ 3,850,000 $ 4,050,000
4,200,000
2025
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above
information.
Req 4
Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a
minus sign.
2,350,000
2,600,000
$
$
Req 4
Req 5
0
0
0
Req 5
0
0
Req 5
Calculate the amount of revenue and gross profit (loss) to be recognized each of the three years using the above
information.
Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a
minus sign.
Show less
Show less A
Transcribed Image Text:Problem 6-11 (Algo) Long-term contract; revenue recognition upon completion [LO6-9] 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: Cost incurred during the year Estimated costs to complete as of year-end Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. Cost incurred during the year Estimated costs to complete as of year-end Req 1 Balance Sheet (Partial) Current assets: Current liabilities: Req 1 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. Req 2A Revenue Gross profit (loss) Req 1 Req 2A Revenue Gross profit (loss) Req 2B 2024 Req 2A Req 2B 2024 Req 2C 2025 Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. Req 2B 2024 Req 2C 2025 2024 $ 2,500,000 5,700,000 2024 $ 3,600,000 5,400,000 3,000,000 2,800,000 2024 $ 2,500,000 5,700,000 $ Req 2C $ 2026 Req 3 0 2025 $ 4,050,000 1,350,000 0 2026 Req 3 4,650,000 4,600,000 Req 3 2025 2026 $ 3,850,000 $ 3,300,000 3,200,000 Req 4 2026 $ 1,485,000 2025 2026 $ 3,850,000 $ 4,050,000 4,200,000 2025 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. Req 4 Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. 2,350,000 2,600,000 $ $ Req 4 Req 5 0 0 0 Req 5 0 0 Req 5 Calculate the amount of revenue and gross profit (loss) to be recognized each of the three years using the above information. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. Show less Show less A
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