6 Exercise 6-21 (Algo) Long-term contract; revenue recognition over time; loss projected on entire project [LO6-9) 2 points 02:33:53 Spord On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,570,000. During 2021, costs of $2,190,000 were incurred with estimated costs of $4,190,000 yet to be incurred. Bilings of $2,690,000 were sent, and cash collected was $2.440,000. In 2022, costs incurred were $2,690,000 with remaining costs estimated to be $3,885,000. 2022 billings were $2,940,000 and $2665,000 cash was collected. The project was completed in 2023 after additional costs of $3,990,000 were incurred. The company's fiscal year-end is December 31 Arrow recognizes revenue over time according to percentage of completion Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022 and 2023 using the percentage of 2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction costs incurred). 2b. Prepare journal entries for 2022 to record the transactions described (credit "various accounts for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022. eBook Print 6 Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction cos entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round calculations, Round your answers to the nearest dollar amount.) 2 points View transaction list 8 02:33:06 Journal entry worksheet Skipped Record the progress billings. eBook Print Note: Enter debits before credits Year General Journal Debit Credit References 2021 Record entry Clear entry View general journal 6 Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construct entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not calculations, Round your answers to the nearest dollar amount.) 2 points View transaction list 8 02:32:44 Journal entry worksheet Skipped 1 2 4 Record the cash collections. eBook Print Note: Enter debits before credits. General Journal Year 2021 Debit Credit References Record entry Clear entry View general Journal 6 Prepare journal entries for 2021 to record the transactions described (credit "various accounts for co entry is required for a transaction/event, select "No journal entry required" in the first account field. calculations. Round your answers to the nearest dollar amount.) 2 points View transaction list 02:32:32 Journal entry worksheet Skipped 2 3 Record the gross profit or loss. eBook Print Note: Enter debits before credits. Year General Journal Debit Credit References 2021 Record entry Clear entry View general Journal