N6.Account Jorg is building an office building for Wilmington Company for $20,000,000. The contract has the followingcharacteristics:The office building is built to the customer's specifications and the customer can make changes to thesespecifications 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 ofthe customer.Jorg provides you with the following details:2017Costs incurred to dateEstimated costs to completeBillings to dateCollections to dateDecember 3120182019$8,000,000$16,000,000 $18,000,0006,000,0003,000,0008,000,000 16,000,000 20,000,0006,000,000 12,000,00018,000,000Required:1. Calculate the estimated total gross profit on the contract as of December 31, 2017, 2018, and 2019.2. Calculate the percentage of completion for 2017, 2018, and 2019.3. Calculate the amount of income (loss) Jorg will recognize for 2017, 2018, and 2019.4.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 2017, 2018, and 2019?

December 31, 2019:Costs incurred to date: $8,000,000Estimated costs to complete: $6,000,000Estimated…

1. Calculate the estimated total gross profit on the contract as of December 31, 2017, 2018, and 2019. 2. Calculate the percentage of completion for 2017, 2018, and 2019. 3. Calculate the amount of income (loss) Jorg will recognize for 2017, 2018, and 2019. 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 2017, 2018, and 2019? 4.