mework Help Save & Ex 0 Required information Problem 5-10 Long-term contract; re

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mework Help Save & Ex 0 Required information Problem 5-10 Long-term contract; revenue recognition over time (LO5-8, 5-9) 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 2020 Cost incurred during the year Eatinated costs to complete as of year-end4,900,000 2,45,00 illings during the year Cash collections during the year 2018 2,100,000 $2,450,000 $2,695,000 ,200,000 2.350,0005,450,000 1900,000 2.300,000,800,000 Westgate recognizes revenue over time according to percentage of completion roblem 5-10 Part 2 K Prev 11 12 13 14 of 14 Next >

Explanation / Answer

SOLUTION

2016-

2017-

2018-

S.No. Accounts title and Explanation Debit ($) Credit ($) 1. Construction in progress 2,100,000   Various accounts 2,100,000 2. Accounts receivable 2,200,000 Billings on construction contract 2,200,000 3. Cash 1,900,000 Accounts receivable 1,900,000 4. Cost of construction 2,100,000   Revenue from long­term contracts 2,100,000

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