Calculate the amount of gross profit
Course:- Accounting Basics
Reference No.:- EM131677705

Assignment Help
Assignment Help >> Accounting Basics

Question - In 2013, 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 2015. Information related to the contract is as follows:





Cost incurred during the year




Estimated costs to complete as of year-end




Billings during the year




Cash collections during the year




Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.


1. Calculate the amount of gross profit (loss) to be recognized in each of the three years.

2. In the journal below, complete the necessary journal entries for the year 2013 (credit various accounts for construction costs incurred).

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Prepare entries in journal form to record the (1) monthly payroll and (2) employer payroll expenses, assuming Social Security and Medicare taxes equal to the amount for empl
From the above information, fill in the blanks below. Be sure to mark your variances F for favorable and U for unfavorable. a. Flexible-budget variance $______ Fixed $______
Khalid Company began business on January 1, 20X1, with assets of $150,000 cash and equities of $150,000 capital stock. In 20X1, it manufactured some inventory at a cost of $
MBA6014- Assume the role of a manager, employee, or an investor, and in 1-2 pages analyze the GAAP and ethical implications of each reporting method in a hypothetical compan
Explain the relationships between adjustments and the following Chapter 3 concepts: (a) The time period assumption, (b) The revenue recognition principle, and (c) The expense
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2011. Transit's fiscal year ends on D
Perform a vertical and horizontal analysis of Wal-Mart Stores, Inc.'s income statements and balance sheets as of January 31, 2015. In performing this analysis, consider any
What are the total assets at the end of the previous annual reporting period? How much cash and cash equivalents did the company have at the end of its most recent annual repo