all journal entries posted

On February 1.2021. Arrow Construction Company entered into a three-year construction contract to build a bridge for price of $8.180.000. During 2021, costs of $2,060,000 were incurred with estimated costs of 54,060,000 yet to be incurred Billings of 52.560,000 were sent, and cash collected was $2.310.000 In 2022, costs incurred were $2,560,000 with remaining costs estimated to be $3.690,000. 2022 bilings were $2,810.000 and $2.535.000 cash was colected. The project was completed in 2023 after additional costs of $3,360,000 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 completion method 2. 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. Complete this question by entering your answers in the tabs below. Reg 28 Red 2A RA Res Reg 1 Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022 and 2023 using the percentage of completion method. (Do not found intermediate calculation. Lous amounts should be indicated with a muig Round your te the nearest whole dolles) Percentages of completion Choosenerator Choose da Percentages of completion Choose numerator Choose denominator complete to date 0 2021 2022 2023 0 2021 Recognired in prior years To date Recognized in 2021 0 Construction revenue Construction expense Gross profit oss $ 5 5 0 O 2022 Recognized in prior years To date Recognized in 2022 5 5 Construction revenue Construction expense Gross profit loss) 0 0 0 2023 Recognized in prior years Recognized in 2023 Yo date 0 $ $ Construction revenue Construction expense Gross profit (0) Journal entry worksheet Record the construction costs. Note: Enter debit but General Journal Debel Credit Year 2021 View general journal Record entry Clienty He 2 > Journal entry worksheet Record the progress billings. Notel Ente debitore cu Year General Journal Debit Credit 2021 Record entry CY View general cual Journal entry worksheet Record the cash collections. Note: Ented Bench General Journal Debit Credit Year 2021 Vw general journal Record entry Clear entry He> Rent Journal entry worksheet Record the gross profit or loss, Note: Enter debit to Year General Journal Debet Credit 2021 Record entry Clear entry View general