Jorg is building an office building for Wilmington Company for $ 20,000,000. The contract has the following
Question:
€¢ 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:
Required:
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?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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