Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the aboveinformation. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minussign.)RevenueGross profit (loss)$20210$20220< Req 42023Req 5 > Cost incurred during the year.Estimated costs to complete as of year-endBillings during the yearCash collections during the year2021$ 2,184,0005,616,0001,800,0001,600,000Cost incurred during the yearEstimated costs to complete as of year-endCost incurred during the yearEstimated costs to complete as of year-end2022$ 3,510,0002,106,0003,894,0003,400,000Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.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 2021 (credit "Various accounts" for construction costsincurred).2021$2,520,0005,720,0002-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costsincurred).2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costsincurred).3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to thecontract.4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costsincurred and costs to complete information.2021$2,520,0005,720,0002023$ 2,316,6002022$3,860,0003,220,0004,306,0005,000,0002022$3,860,0004,220,00002023$3,220,0005. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costsincurred and costs to complete information.02023$4,080,000

Gross profit refers to the sum value of money gained by an entity through its business activities…

Answered: Req 4 Req 5 >

Business

Accounting

Req 4 Req 5 >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Question

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above
information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus
sign.)
Revenue
Gross profit (loss)
$
2021
0
$
2022
0
< Req 4
2023
Req 5 >

Cost incurred during the year.
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
2021
$ 2,184,000
5,616,000
1,800,000
1,600,000
Cost incurred during the year
Estimated costs to complete as of year-end
Cost incurred during the year
Estimated costs to complete as of year-end
2022
$ 3,510,000
2,106,000
3,894,000
3,400,000
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.
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 2021 (credit "Various accounts" for construction costs
incurred).
2021
$2,520,000
5,720,000
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs
incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs
incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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.
2021
$2,520,000
5,720,000
2023
$ 2,316,600
2022
$3,860,000
3,220,000
4,306,000
5,000,000
2022
$3,860,000
4,220,000
0
2023
$3,220,000
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.
0
2023
$4,080,000

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