Prcentage-of-completion method lo5-5 in 2013 the westgate

Reference no: EM13570154

Percentage-of-completion method [LO5-5] 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 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,710,000 3,500,000 4,790,000 Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.

Required: 1.Calculate the amount of gross profit to be recognized in each of the three years. 2.1 In the journal below, complete the necessary journal entries for the year 2013. 2.2In the journal below, complete the necessary journal entries for the year 2014 . 2.3In the journal below, complete the necessary journal entries for the year 2015. Complete the information required below to prepare a partial balance sheet for 2013 and 2014 showing any items related to the contract.4. Calculate the amount of gross profit to be recognized in each of the three years, assuming the following costs incurred and costs to complete information.2013 2014 2015 Costs incurred during the year $ 2,510,000 $ 3,855,000 $ 3,210,000 Estimated costs to complete 5,710,000 3,210,000 0 5. Calculate the amount of gross profit to be recognized in each of the three years, assuming the following costs incurred and costs to complete information.

Reference no: EM13570154

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