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 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: 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: Accounts receivable Construction in progress Less: Billings Costs and profit in excess of billings Current liabilities: Construction in progress Problem 6-10 (Algo) Part 3 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) X Answer is complete but not entirely correct. ✓ ✓ X 2021 2022 $2,044,000 $2,628,000 5,256,000 2,628,000 2,170,000 2,502,000 1,885,000 2,600,000 2021 $ 2,044,000 X 2,170,000✔ $285,000 (126,000) $ 0✓ 2022 $4,672,000 X 4,672,000 2023 $2,890,800 $ 5,328,000 5,515,000 $ 187,000✔ 0 0
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 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: 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: Accounts receivable Construction in progress Less: Billings Costs and profit in excess of billings Current liabilities: Construction in progress Problem 6-10 (Algo) Part 3 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) X Answer is complete but not entirely correct. ✓ ✓ X 2021 2022 $2,044,000 $2,628,000 5,256,000 2,628,000 2,170,000 2,502,000 1,885,000 2,600,000 2021 $ 2,044,000 X 2,170,000✔ $285,000 (126,000) $ 0✓ 2022 $4,672,000 X 4,672,000 2023 $2,890,800 $ 5,328,000 5,515,000 $ 187,000✔ 0 0
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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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 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:
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:
Accounts receivable
Construction in progress
Less: Billings
Costs and profit in excess of billings
Current liabilities:
Construction in progress
Problem 6-10 (Algo) Part 3
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the
contract. (Do not round intermediate calculations.)
X Answer is complete but not entirely correct.
>>>>
✓
X
2021
2022
$2,044,000 $2,628,000
5,256,000 2,628,000
2,170,000
2,502,000
1,885,000 2,600,000
2021
$ 2,044,000 X
2,170,000✔
$285,000
(126,000)
$
0✓
2022
$4,672,000 X
4,672,000
2023
$2,890,800
$
5,328,000
5,515,000
$ 187,000✔
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb49a503-828d-4a7c-a8de-1f8133b39d68%2F01887aa7-7a6f-4569-809b-cae8939356f1%2Fnecu1s_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 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:
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:
Accounts receivable
Construction in progress
Less: Billings
Costs and profit in excess of billings
Current liabilities:
Construction in progress
Problem 6-10 (Algo) Part 3
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the
contract. (Do not round intermediate calculations.)
X Answer is complete but not entirely correct.
>>>>
✓
X
2021
2022
$2,044,000 $2,628,000
5,256,000 2,628,000
2,170,000
2,502,000
1,885,000 2,600,000
2021
$ 2,044,000 X
2,170,000✔
$285,000
(126,000)
$
0✓
2022
$4,672,000 X
4,672,000
2023
$2,890,800
$
5,328,000
5,515,000
$ 187,000✔
0
0
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