In 2016, the Westgate Construction Company entered into a contract to construct a road for Santa ... | eBooks | Education

In 2016, the Westgate Construction Company entered into a contract to construct a road for Santa ...

In 2016, the Westgate Construction Company entered into a contract to construct a road for Santa ... PLDZ-3040
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In 2016, 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 2018. Information related to the contract is as follows:

                2016       2017       2018

Cost incurred during the year   $              2,523,000                            $              3,177,000                            $              1,980,000            

Estimated costs to complete as of year-end                     6,177,000                                            1,800,000                                            0               

Billings during the year                               2,070,000                                            3,630,000                                            4,300,000            

Cash collections during the year                             1,835,000                                            3,400,000                                            4,765,000               

     Westgate recognizes revenue over time according to percentage of completion.

Required:

Calculate the amount of revenue and gross profit to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

2-a. In the journal below, complete the necessary journal entries for the year 2016 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2-b.In the journal below, complete the necessary journal entries for the year 2017 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2-c.In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

               

                2016       2017                                                                                                                             2018

Cost i

In 2016, 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 2018. Information related to the contract is as follows: 2016 2017 2
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