Exercise 5-19 Long-term contract; revenue recognition over time; loss projected on entire project [LOS- 9 On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,180,000. During 2018, costs of $2,060,000 were incurred with estimated costs of $4,060,000 yet to be ncurred. Billings of $2,560,000 were sent, and cash collected was $2,310,000. In 2019, costs incured were $2,560,000 with remaining costs estimated to be $3,690,000. 2019 billings were $2,810,000 and $2,535,000 cash was collected. The project was completed in 2020 after additional costs of $3,860,000 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 journal 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. Complete this question by entering your answers in the tabs below Req 1Req 2A Req 28 Req 3A Req 38 Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019 and 2020 using the percentage of completion method? (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round answers to the nearest whole dollar.) your final Choose denominator stimated total costs -% complete to Choose numerator date l costs to date 2,060,000+ 4,620,000 6,120,000 33.6601 % 2019 2020 100.0000% Recognized in 2018 To date revenue Gross profit Recognized in Recogniz 2019 To date Gross profit (130,000) S (130,000)