Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] 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 2020 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2019 $2,072,000 $2,738,000 $2,849,000 2,590,000 2,650,000 2,700,000 5,328,000 2,160,0e0 1,880,000 5,190,000 5,420,000 Westgate recognizes revenue over time according to percentage of completion. es 3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.) Balance Sheet (Partial) 2018 2019 Current assets Sales revenue eferred gross profit Current liabilities

Explanation / Answer

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Sales Revenue will be the Revenure Recognized during the year

Current assets will be the Accounts Receivables

2018 2019 2020 a. Cost incurred during the year $2,072,000 $2,738,000 $2,849,000 b. Add: Estimated Costs to complete as of year end 5328000 2590000                    -   Total Cost $7,400,000 $5,328,000 $2,849,000 Percentage of completion 28% 51% 100% Revenue to be recognized ($10000000 x % of comp) 2800000 5138889 2061111 Billings during the year 2160000 2650000 5190000 Less: Cash collections during the year 1880000 2700000 5420000 Accounts Receivables 280000                    -  

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