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ation.com Chapter 5 part C HW Check my work mode: This shows what is correct or incorrect for the work you have completed so far.

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ation.com Chapter 5 part C HW Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 6 Exercise 5-19 Long-term contract; revenue recognition over time; loss projected on entire project LO5- 9] 10 points On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,540,000. During 2018, costs of $2,180,000 were incurred with estimated costs of $4,180,000 yet to be incurred. Billings of $2.680,000 were sent, and cash collected was $2,430,000. In 2019, costs incurred were $2,680,000 with remaining costs estimated to be $3,870,000. 2019 billings were $2,930,000 and $2,655,000 cash was collected. The project was completed in 2020 after additional costs of $3,980,000 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 2018, 2019, and 2020 using the percentage of completion method? 2a. Prepare joumal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred). 2b. Prepare journal entries for 2019 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, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2019 Current assets Accounts receivable os 525,000 Mc Graw Prev 6 of 1 Next >

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