Reference no: EM132793709

In February 2020, Oriole Construction signed a contract and commenced construction on a parking garage. The total contract price was $90.9 million and was expected to be completed in July 2024 at a total estimated cost of $82.1 million. Payment by the customer was to be made in several stages, based on significant events and dates throughout the construction timeline. The customer was to have control over the parking garage and was able to make major changes to the project during the construction process. Oriole's year-end was September 30.

• By the end of September, 2020, Oriole had incurred $16,420,000 in costs and had invoiced $10,100,000 in progress billings. $7,900,000 of the progress billings had been collected.
• By September 30, 2021, Oriole had incurred $43,560,000 in total costs and had invoiced $45,100,000 in progress billings, including the progress billings in 2020. Of the total billings, $31,000,000 in total had been collected. Also, Oriole reviewed its cost estimates on the project, and now believed the parking garage would cost $79.2 million in total to complete.

Problem 1: Make all journal entries required for the year ended September 30, 2020. Use Materials, Cash, Payables for costs incurred to date.

Problem 2: Make all journal entries required for the year ended September 30, 2021. Use Materials, Cash, Payables for costs incurred to date.