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 13 On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,475,000. During 2021, costs of $2,190,000 were incurred, with estimated costs of $4,190,000 yet to be incurred. Billings of $2,728,000 were sent, and cash collected 10 was $2,440,000. points In 2022, costs incurred were $2,728,000 with remaining costs estimated to be $3,885,000.2022 billings were $2,978,000, and $2,665,000 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. 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). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. 3b. Pre a partial balance sheet to show the presentation of the project as of December 31, 2022. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req Req 3B Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. (Loss a indicated with a minus sign.) Year Gross profit (loss) recognized $ 0 2021 2022 2023 Total Revenue recognized $ 0 0 8,475,000 $ 8,475,000 $ 0