Complete the information required below to prepare a

Reference no: EM13575848

In 2013, 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 2015. Information related to the contract is as follows:

	2013		2014		2015
Cost incurred during the year	$	2,291,000	$	3,555,000	$	2,259,400
Estimated costs to complete as of year-end		5,609,000		2,054,000		0
Billings during the year		1,900,000		3,946,000		4,154,000
Cash collections during the year		1,710,000		3,500,000		4,790,000

Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.

1. Calculate the amount of gross profit (loss) to be recognized in each of the three years.

2.1 In the journal below, complete the necessary journal entries for the year 2013 (credit various accounts for construction costs incurred).

2.2 In the journal below, complete the necessary journal entries for the year 2014 (credit various accounts for construction costs incurred).

2.3 In the journal below, complete the necessary journal entries for the year 2015 (credit various accounts for construction costs incurred).

3. Complete the information required below to prepare a partial balance sheet for 2013 and 2014 showing any items related to the contract.

Calculate the amount of gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations.)

2013

2014

2015

Costs incurred during the year

2,510,000

3,855,000

3,210,000

Estimated costs to complete as of year-end

5,710,000

3,210,000

5. Calculate the amount of gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations.)

	2013		2014		2015
Costs incurred during the year	$	2,510,000	$	3,855,000	$	4,065,000
Estimated costs to complete as of year-end		5,710,000		4,210,000

Reference no: EM13575848

Questions Cloud

Cash in the amounts of 12000 and 20000 was paid and : lacome company produces computer software that kozuch inc. sells. lacoma recieves a royalty of 15 percent of sales.

Scores on the stanford-binet intelligence scale have a mean : scores on the stanford-binet intelligence scale have a mean of 100 and a standard deviation of 16 and are presumed to

Selected condensed data taken from a recent balance sheet : selected condensed data taken from a recent balance sheet of kutenai luau inc. are as followskutenai luau inc.balance

In the erie division cost of goods sold is 60000 variable : in the erie division cost of goods sold is 60000 variable and 16500 fixed and operating expenses are 25000 variable and

Complete the information required below to prepare a : in 2013 the westgate construction company entered into a contract to construct a road for santa clara county for

Suppose that we are testing h0 micromicro0 vs h1 : suppose that we are testing h0 micromicro0 vs. h1 microgtmicro0 with a sample size of n15. calculate bounds on the

What are the major uses of cash other than operation and : what are the major uses of cash. other than operation and how have these varied over the three-year period presented?no

Find the percentage of private school students with 95 : question the percentage of students in private school is about 11.in a sample of 450 students from different countries

Compute for each year 1 the inventory turnover and 2 the : the following data are from the income statements of ellen noodles companysales64200006240000beginning

User Account

All Pages