Business, 23.06.2020 23:01 alonnachambon

In 2021, 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 2023. Information related to the contract is as follows: 2021 2022 2023
Cost incurred during the year $ 2,016,000 $ 2,808,000 $ 2,613,600
Estimated costs to complete as of year-end 5,184,000 2,376,000 0
Billings during the year 2,180,000 2,644,000 5,176,000
Cash collections during the year 1,890,000 2,500,000 5,610,000
Westgate recognizes revenue over time according to percentage of completion
Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

Answers: 3

Show answers

Answers

Answer from: payshencec21

Explanation:

2021 2022 2023

Bills during the year 2,180,000 2,644,000 5,176,000

Cost incurred in the year 2,016,000 2,808,000 2,613,600

Cumulative cost to date 2,016,000 4,824,000 7,437,000

Estimated cost to complete 5,184,000 2,376,000 0

Estimated total cost 7,200,000 7,200,000 7,437,000

percentage completion

2,016,000/7,200,000*100 =28%

4,824,000/7,200,000*100 = 67%

7,437,000/7,437,000 *100=100%

Percentage Completion 28 67 100

Contract price 10,000,000

Less cumulative cost (7,437,000)

Gross profit 2,563,000

Contract value 2021 10,000,000* 28 % =2,800,000

2022 10,000,000* 67% = 6,700,000

2023 10,000,000*1005 = 10,000,000

Contract value 2,800,000 6,700,000 10,000,000

less revenue recognized 2,800,000 6,700,000

2,800,000 3,900,00 3,300,000

less cost incurred in the year 2,016,000 2,808,000 2,613,000

Profit recognized 784,000 1,092,000 687,000

Answer from: Quest

prokaryotic cells do not contain a nucleus or any other membrane-bound organelle. eukaryotic cells contain membrane-bound organelles, including a nucleus. so i belive the answer is a : p hope it

Answer from: Quest

Life after 70 is expected to be spent in an unhealthy/sick state.

Another question on Business

Business, 21.06.2019 14:30

Jaynet spends $30,000 per year on painting supplies and storage space. she recently received two job offers from a famous marketing firm – one offer was for $85,000 per year, and the other was for $120,000. however, she turned both jobs down to continue a painting career. if jaynet sells 40 paintings per year at a price of $4,000 each:

Answers: 1

Answer

Business, 22.06.2019 02:50

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

Answers: 3

Answer

Business, 22.06.2019 14:10

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?

Answers: 1

Answer

Business, 22.06.2019 21:00

Warner inc. sells a high-speed retrieval system for mining information. it provides the following information for the year. budgeted actual overhead cost $965,700 $905,000 machine hours 58,570 49,200 direct labor hours 107,300 104,200 overhead is applied on the basis of direct labor hours. compute the predetermined overhead rate. predetermined overhead rate $ per direct labor hour link to text determine the amount of overhead applied for the year. the amount of overhead applied $

Answers: 1

Answer

You know the right answer?

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Cla...

Questions