Question

13 Return to question Part 3 of 5 Required information [The following information applies to the questions displayed below.) 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: 10 points 2023 $3,049,200 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,581,000 6,319,000 2,890,000 1,845,000 2022 $2,347,000 2,772,000 2,838,000 2,900,000 5,072, 000 5,255,000 Westgate recognizes revenue over time according to percentage of completion 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) 3 Answer is complete but not entirely correct. 2022 2021 S 245 000 S 183.000 Balance Sheet (Partial) Current assets Accounts receivable Construction in progress Less Billings Costs and profit in excess of billings Current liabilities $ 2581.000 2.090.000 5. 111.000 4.928,000 499.000 183.000 13 14 15 of 15 !! Next >

Answer 1

Compute construction in progress Amount as follows:

	2021	2022	2023
Billing during the year (A)	$2,090,000	$2,838,000	$5,072,000
Cost incured during the year (B)	$2,581,000	$2,347,000	$3,049,200
Cumulative cost to date (C)	$2,581,000	$4,928,000	$7,977,200
Add: Estimated costs to complete as of year end (D)	$6,319,000	$2,772,000
Estimated total cost (E = C+D)	$8,900,000	$7,700,000	$7,977,200
% of Completion (F = C/E)	29.0%	64.0%	100.0%
Contract price (G)	$10,000,000	$10,000,000	$10,000,000
Construction in progress (F × G)	$2,900,000	$6,400,000	$10,000,000