Check my w 7 3 points 22222 Exercise 6-22 (Algo) Long-term contract; revenue recognition upon project completion; loss projected on entire project (LO6-8, 6-9) On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of 58.225.000 During 2021. costs of $2,090,000 were incurred with estimated costs of $4.090,000 yet to be incurred Billings of $2,608,000 were sent and cash collected was $2,340,000 In 2022, costs incurred were $2,600,000 with remaining costs estimated to be $3,735,000, 2022 billings were $2,858,000, and $2,565,000 cash was collected. The project was completed in 2023 after additional costs of $3,890,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 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) 3. Prepare a partial balance sheet to show the presentation of the project as of December 2 2021 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022 . Check 7 Prepare journal entries for 2021 to record the transactions described (credit various accounts for construction costs incurred). (I DO entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list 3 points Journal entry worksheet 02:20 2 Record the construction costs Beck Nobei Enter debts before credits Year 2021 Pem General Journal Detalt Credit ferences Record entry Clear entry View general journal Check 7 Prepare journal entries for 2021 to record the transactions described (credit various accounts for construction costs incurred) ar no entry is required for a transaction/event, select "No journal entry required to the first account field.) View transaction at 3 polis Journal entry worksheet 322800 4 Swoped Record the progress billings Dock Notatter dette foreros. General Joumal Detit Year 202 Credit References Record entry Clear entry View general journal 7 Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transactions 3 DOS 8 622740 Journal entry worksheet
