The writer is very fast, professional and responded to the review request fast also. Thank you.
I need help. I don’t understand how to find the costs.
In 2018, 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 2020. Information related to the contract is as follows:
2018 2019 2020Cost incurred during the year$1,976,000 $3,420,000 $2,424,400 Estimated costs to of year-end 5,624,000 2,204,000 0 Billings during the year 1,600,000 3,796,000 4,604,000 Cash collections during the year 1,400,000 3,200,000 5,400,000
Westgate Construction uses the completed contract method of accounting for long-term construction contracts.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit “Various accounts” for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit “Various accounts” for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit “Various accounts” for construction costs incurred).
3. Complete the information required below to partial balance sheet for 2018 and 2019 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.
2018 2019 2020Cost incurred during the year$2,540,000 $3,870,000 $3,240,000 Estimated costs to s of year-end 5,740,000 3,240,000 0
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.
2018 2019 2020Cost incurred during the year$2,540,000 $3,870,000 $4,110,000 Estimated costs to s of year-end 5,740,000 4,240,000 0
Reference links
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more