Exercise 6-21 (Algo) Long-term contract; revenue recognition over time; loss projected on entire project [ [LO-9] On Februay 1, 2021. Arrow Construction Compary entered into a three-year construction contract to build a bridge for a price of $8.450,000. During 202t, costs of $2.150,000 were incurred with estimated costs of $4,150,000 yet to be incurred. Biflings of $2,650,000 were sent, and cash collected was $2,400.000 In 2022 costs incurred were $2,650,000 with remaining costs estimated to be $3,825,000,2022 billings were $2,900,000 and $2,625,000 cash was coilected. The project was completed in 2023 after additional costs of $3,950,000 were incurted. The compary's fiscal year-end is December 31. Arrow recognizes tevenue over time according to percentage of completion. Required: 1. Compute the amoumt of revenue and gross prolit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method. 2n. Prepare joumal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incuired) 26. Prepare joumal entries for 2022 to record the trantactions described (credit "yanous accounts" for construction costs incurred) 36. Prepare a partiat batance sheet to show the presentation of the project as of December 31,2021 3a. Hrepare a partial balance sheet to show the presentation of the project as of December 31, 2022. Comylete this question by enterigg your answers in the tabs below. Compote the ampunt of revenue and gross profit or loss to be recogrized in 2021, 2022, and 2023 using the percentage of completion method. (Do iok raund literimedlate calculations, Loss amounts should be indicatend with a minsis sigh. Found your final anskers to the niateit whiple doffac) Complete this question by entering your answers in the tabs below. Campute the amount of revemue and gross profit or loss to be recognited in 2021, 2022, and 2023 esing the percentage of complotion method. (Do not round intermesate calculations. Loss amounts ahould be indicated with a minus sign. Flound your final antwors to the nearest whole dollac, Compute the amecunt of revenue and groms profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 osing the parcentage of coinpletion nosiet whole doliat) Camplete this question by eatering your answers in the tabs below. Tiepare Gurnal entries for 2021 to rocord the transactions described (credit "various accourts" for construction costs incurred), (US no enhir is recuired foe a transactionjevent, solect "Wo fournal entry required" in the first account field, Do not reand intermediate calculitions, flound your antwent to then neareit dolkar amount.) Journal entry worksheet Weced the cmesitriction cests Prepare journat entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred). (tf no enwry ia required for a transsction/event, select "No foumat entry requlred" in the firgt account field, Do not round lintermodiate calcubations. kound your answers to the nearest dolar amount.) Journal entry worksheet Pecturd the construction costs. Complete this question by entering your answers in the tabs below. Propare a partial balance sheet to show the presentation of the project as of December 31,2021 . fDo not round interimedlate calculstions, Round your answers to the nearest dollar amount.) 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021,2022 , and 2023 using the percentage of requirea: completion method. 20. Prepare joumal 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. 36. Prepare a partial balance sheet to show the presentation of the project as of December 31,2022. Complete this question by entering your answers in the tabs below. Frepare a partial balance sheet to show the presentation of the project as of December 31, 2022. (Do not round intermediate calculationt. Round your answers to the neareit dollar amount.)
