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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Help me with:
| 4. | Prepare all |
| 5. | How will this project be carried on the |
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 |
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