ACCT231

Jorg is building an office buliding for Wilmington Company for $20,000,000. The contract has the following characteristics: - The office building is bulit 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: Required: 1. Calculate the estimated total gross profit on the contract as of December 31, 2019, 2020, and 2021 . 2. Calculate the percentage of completion for 2019, 2020, and 2021. 3. Calculate the amount of income (loss) Jorg will recognize for 2019, 2020, and 2021 . 4. Prepare all journal entries related to this project for Jorg for all 3 years. Required: 1. Calculate the estimated total gross profit on the contract as of December 31,2019,2020, and 2021. 2. Calculate the percentage of completion for 2019,2020 , and 2021 . 3. Calculate the amount of income (loss) Jorg will recognize for 2019, 2020, and 2021. 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 CONSTRUCTION COMPANY Score: 26/34 Balance Sheet impact As of December 31 , \begin{tabular}{|l|} \hline 1 \\ \hline Current Assets: \\ \hline \end{tabular} 5 Accounts receivable 4 Construction in progress 5 Less: Partial billings 6 Construction in progress in excess of biltings