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: 2024 $ 2,490,000 5,810,000 2025 $ 3,984,000 1,826,000 4,444,000 3,900,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 2,030,000 1,815,000 2026 $ 2,008,600 0 3,526,000 4,285,000
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: 2024 $ 2,490,000 5,810,000 2025 $ 3,984,000 1,826,000 4,444,000 3,900,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. 2,030,000 1,815,000 2026 $ 2,008,600 0 3,526,000 4,285,000
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
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
Balance Sheet (Partial)
Current assets:
Current liabilities:
Problem 6-10 (Algo) Part 3
3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the
contract.
Note: Do not round Intermediate calculations.
2024
2024
$ 2,490,000
5,810,000
2,030,000
1,815,000
0
2025
$ 3,984,000
1,826,000
4,444,000
3,900,000
0
2025
0
2026
$ 2,008, 600
0
0
3,526,000
4,285,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcebd4779-0d77-4934-b7cd-970817cc004d%2F29dc524e-88c9-4de4-85cb-e4f9c2716676%2Fr8cxn5m_processed.png&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
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
Balance Sheet (Partial)
Current assets:
Current liabilities:
Problem 6-10 (Algo) Part 3
3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the
contract.
Note: Do not round Intermediate calculations.
2024
2024
$ 2,490,000
5,810,000
2,030,000
1,815,000
0
2025
$ 3,984,000
1,826,000
4,444,000
3,900,000
0
2025
0
2026
$ 2,008, 600
0
0
3,526,000
4,285,000
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