Help me with: 4. Prepare all journal entries related to this project for Jorg for all 3 years. 5. How will this project be carried on the balance sheet for 2019, 2020, and 2021? Jorg is building an office building for Wilmington Company for $20,000,000. The contract has the following characteristics: • The office building is built to the customer’s specifications and the customer can make changes to these specifications over the contract term. • Progress payments are made by the customer throughout construction. • The customer can cancel the contract at any time (with a termination penalty); any work in process is the property of the customer. Jorg provides you with the following details: December 31 2019 2020 2021 Costs incurred to date $8,000,000 $16,000,000 $18,000,000 Estimated costs to complete 6,000,000 3,000,000 — Billings to date 8,000,000 16,000,000 20,000,000 Collections to date 6,000,000 12,000,000 18,000,000

Help me with: 4. Prepare all journal entries related to this project for Jorg for all 3 years. 5. How will this project be carried on the balance sheet for 2019, 2020, and 2021? Jorg is building an office building for Wilmington Company for $20,000,000. The contract has the following characteristics: • The office building is built to the customer’s specifications and the customer can make changes to these specifications over the contract term. • Progress payments are made by the customer throughout construction. • The customer can cancel the contract at any time (with a termination penalty); any work in process is the property of the customer. Jorg provides you with the following details: December 31 2019 2020 2021 Costs incurred to date $8,000,000 $16,000,000 $18,000,000 Estimated costs to complete 6,000,000 3,000,000 — Billings to date 8,000,000 16,000,000 20,000,000 Collections to date 6,000,000 12,000,000 18,000,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10P

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	December 31
Costs incurred to date	$8,000,000	$16,000,000	$18,000,000
Estimated costs to complete	6,000,000	3,000,000	—
Billings to date	8,000,000	16,000,000	20,000,000
Collections to date	6,000,000	12,000,000	18,000,000

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4.	Prepare all journal entries related to this project for Jorg for all 3 years.
5.	How will this project be carried on the balance sheet for 2019, 2020, and 2021?

•	The office building is built to the customer’s specifications and the customer can make changes to these specifications over the contract term.
•	Progress payments are made by the customer throughout construction.
•	The customer can cancel the contract at any time (with a termination penalty); any work in process is the property of the customer.

	December 31
2019	2020	2021
Costs incurred to date	$8,000,000	$16,000,000	$18,000,000
Estimated costs to complete	6,000,000	3,000,000	—
Billings to date	8,000,000	16,000,000	20,000,000
Collections to date	6,000,000	12,000,000	18,000,000