2. The Orlando Company is involved in a three-year long-term contract. The following data relate to this contract: Contract price Cost incurred each year Cost incurred to date 2016 $24,000 24,000 96,000 12,000 8,000 2017 2017 Entries a. Construction costs for the year b. Partial billings c. Cash collections d. Gross profit $24,000 48,000 48,000 Estimated cost to complete Partial billings each year Cash collected from billings Required: Prepare the journal entries for each of the following assuming Orlando satisfies its performance obligation over time: 48,000 2018 $56,000 104,000 2018 Entries a. Construction costs for the year b. Partial billings c. Cash collections d. Gross profit and closing of construction accounts 0 100,000 52,000 100,000 Total $160,000 104,000

2. The Orlando Company is involved in a three-year long-term contract. The following data relate to this contract: hequincu. Prepare the journal entries for each of the following assuming Orlando satisfies its performance obligation over time: 2017 Entries a. Construction costs for the year b. Partial billings c. Cash collections d. Gross profit 2018 Entries a. Construction costs for the year b. Partial billings c. Cash collections d. Gross profit and closing of construction accounts