Question

My answers are right!! please help on the 2 blank ones!

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: 2023 $2,655,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,059,000 5,041,000 2,190,000 1,895,000 2022 $2,627,000 2,414,000 2,496,000 2,400,000 5.314.000 5,705,000 Westgate recognizes revenue over time according to percentage of completion

Answer 1

In simple method, Revenue for each year - Cost incurred during the year = Gross profit or (Loss) for each year --> Revenue for each year = Gross profit or (Loss) for each year + Cost incurred during the year Cost incurred during the year Gross profit or (Loss) for each year Revenue for each year 2021 $2,059,000 $841,000 $2,900,000 2022 $3,895,000 $1,085,000 $2,810,000 2023 $4,185,000 $105,000 $4,290,000 Cross Check: Revenue Recognized in 2021 Recognized in 2022 Recognized in 2023 Total amounts recognized $2,900,000 $2,810,000 $4,290,000 $10,000,000 Gross Profit or (Loss) $841,000 $1,085,000 $105,000 $139,000 --> Both figures matched