PROBLEM 3 The Orlando Company is involved in a three-year long-term contract, which began in January 2019. The contract price is $160,000. The following data relate to this contract: 2019 2020 2021 Cost incurred each year $24,000 $24,000 $ 56,000 Cost incurred to date 24,000 48,000 104,000 Estimated cost to complete 96,000 48,000 0 Partial billings each year 12,000 48,000 100,000 8,000 52,000 100,000 Cash collected from Billings each year Orlando satisfies performance obligations (recognizes profit) over time. Requirements: 1. Determine the estimated gross profit for the project for 2019, 2020, and 2021. 2. Calculate the percentage of completion for the project for 2019, 2020, and 2021. 3. Calculate recognized profit or (loss) for 2019, 2020, and 2021. 4. Prepare journal entries for costs, billings, collections and gross profit for 2019. 5. Calculate the CIP and Billings reported amount for the balance sheet for years 2019 & 2020