Required Information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following Information applies to the questions displayed below.] 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: 2025 2026 2024 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 1,826,000 4,444,000 $ 2,008,600 e Cash collections during the year 1,815,000 3,900,000 3,526,000 4,285,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 . Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs ncurred and costs to complete Information. Note: Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts hould be indicated with a minus sign. Costs incurred during the year Estimated costs to complete as of year-end 2024 2024 2025 2026 $ 2,490,000 5,810,000 $ 3,815,000 4,130,000 $ 3,945,000 2025 2026
Required Information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following Information applies to the questions displayed below.] 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: 2025 2026 2024 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 1,826,000 4,444,000 $ 2,008,600 e Cash collections during the year 1,815,000 3,900,000 3,526,000 4,285,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 . Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs ncurred and costs to complete Information. Note: Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts hould be indicated with a minus sign. Costs incurred during the year Estimated costs to complete as of year-end 2024 2024 2025 2026 $ 2,490,000 5,810,000 $ 3,815,000 4,130,000 $ 3,945,000 2025 2026
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]
[The following Information applies to the questions displayed below.]
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
2024
2025
2026
$ 2,490,000
5,810,000
2,030,000
$ 3,984,000
1,826,000
4,444,000
$ 2,008,600
e
3,900,000
3,526,000
4,285,000
Billings during the year
Cash collections during the year
1,815,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 5
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.
Note: Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2024
$ 2,490,000
5,810,000
2025
$ 3,815,000
4,130,000
2026
$ 3,945,000
2025
2026](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31c756a5-242f-4976-b7fb-c64a4c14e255%2F6dba0f22-12f9-4870-bebf-0f65577252e2%2F8syhh8d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]
[The following Information applies to the questions displayed below.]
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
2024
2025
2026
$ 2,490,000
5,810,000
2,030,000
$ 3,984,000
1,826,000
4,444,000
$ 2,008,600
e
3,900,000
3,526,000
4,285,000
Billings during the year
Cash collections during the year
1,815,000
Westgate recognizes revenue over time according to percentage of completion.
Problem 6-10 (Algo) Part 5
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.
Note: Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
2024
2024
$ 2,490,000
5,810,000
2025
$ 3,815,000
4,130,000
2026
$ 3,945,000
2025
2026
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