Exercise $6-21($Algo$)$ Long$-$term contract; revenue recognition over time; loss projected on entire project $[$LO$6-9]$ $$4,070,000$ yet to be incurred. Billings of $$2,570,000$ were sent, and cash collected was $$2,320,000.$ of $$3,870,000$ were incurred. The company's fiscal year$-$end is December $31.$ Arrow recognizes revenue over time according to percentage of completion.

Required:

Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years

$2$a$.$ Prepare journal entries for $2024$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$2$b$.$ Prepare journal entries for $2025$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$)$

$3$a$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2024.$

$3$b$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2025$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ A

Req $2$B

Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.

Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to the nearest whole dollar.

$\backslash$table$[[$Percentages of completion$],[2024,,+,,=,0],[2025,,+,+,=,0],[2026,,,-,,0],[2024],[,$To date,,Recognized in prior years,Recognized in $2024],[$Construction revenue,,,,$$,0],[$Construction expense,,,,$$,0],[$Gross profit $($loss$),,,,$$$,0],[2025],[,$To date,,Recognized in prior years,Recognized in $2025],[$Construction revenue,,,,$$,0],[$Construction expense,,,,$$,0]]$

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